What is a sales forecast? What is a sales budget? Why do we need them?

In simple terms, people are driven by goals and what we need to do is make sure we are clear on what their objectives are – that’s their sales budget. A sales forecast is actually a way for a sales person to collate information about deals that are on the go.

From a business point of view, we usually have a “Work in Progress” register, which is where jobs go when we win them. We may even have a quote register, which is done through our quoting system or our accounting system. Very rarely do we see companies actually track opportunities before they turn into a quote and then on to a sale.ç

Your Sales Forecast Document is like a “Radar Screen” where you can keep all the opportunities you are working on in the one place. In this document, you can put the overview of the opportunity, the anticipated win date, and a percentage confidence against that figure. We can then start to actually predict how many sales are coming through this month or next month or 6 months away, using this document.

When I was a Sales rep, this was my bible. I would use my sales forecast to understand where I was in the deals I had, whether I had enough deals on the table to reach my sales targets and whether I needed to go out prospecting. It is a really easy way to keep across your deals and make sure you have enough work in your funnel.

Download the document and start filling it out for your business. It’s a great way to start, and you can move from a spread sheet into a CRM as you progress – but for those of you who are just starting out managing your opportunities – this is a valuable tool to help you along.

Complete the form below to gain access to the “Sales Forecasting” Template.

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