sales sales budget forecast faq forecasting Budget: What if I don't know what my sales will be?

Forecasting your sales goals is a bit of an 'educated guess'.  No one knows exactly what their sales are going to be.. but the more experience you have - the better you get at guessing.

If you're just starting your budget - don't worry about this too much yet. When you're finished your budget - you'll know whether your goals are high enough to be profitable - or so high that they're unrealistic.  In the meantime, just keep these tips in mind:

  • Be realistic - falling short of your sales goals will mean falling short of your profit goals too.  You don't want that.
  • Don't be too pessimistic - If you're too conservative, your overhead markups will end up high - as you'll try to recover all your overhead on a small sales goal.  This will make your pricing more expensive than it needs to be.

Do your best to set a realistic target, then finish your budget.  When you review your forecast Profit / Loss at the end, you'll be able to dial in your sales goal much more accurately.

... then you just have to hit those goals!


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