A sales forecast is an essential tool for managing a business of any size. It is a month-by-month forecast of the level of sales you expect to achieve. Most businesses draw up a sales forecast once a year.
Armed with this information you can rapidly identify problems and opportunities - and do something about them. For example, accurately forecasting your sales and building a sales plan can help you manage your production, staff and financing needs more effectively and avoid unforeseen cash flow problems. While it's always wise to expect the unexpected, a well-constructed sales plan,combined with accurate sales forecasting, can allow you to spend more time developing your business rather than responding to day-to-day developments in sales and marketing.
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