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Chapter 11: Forecast Your Sales - Page 11.7

Sales Programs

Details are critical to implementation. Use this topic to list the specific information related to sales programs in your milestones table, with the specific persons responsible, deadlines, and budgets. How is this strategy to be implemented and measured? Do you have concrete and specific plans?

Business plans are about results, and generating results depends in part on how specific you are in the plan. For anything related to sales that is supposed to happen, include it here and list the person responsible, dates required, and budgets. All of that will make your business plan more real.

Forecast Details

Your business plan text should summarize and highlight the numbers you have entered in the Sales Forecast table. Make sure you discuss important assumptions in enough detail, and that you explain the background sufficiently. Try to anticipate the questions your readers will ask. Include whatever information you think will be relevant, that your readers will need.

How Many Years?

I believe a business plan should normally project sales by month for the next 12 months, and annual sales for the following three years. This doesn't mean businesses shouldn't plan for a longer term than just three years. It does mean, however, that the detail of monthly forecasts doesn't pay off beyond a year, except in special cases. It also means that the detail in the yearly forecasts probably doesn't make sense beyond three years.

It does mean, of course, that you still plan your business for five, 10, and even 15-year timeframes; just don't do it within the detailed context of business plan financials.

Summary

A sales forecast is hard for many people because they are unsure of how to forecast. Don't worry; if you know your business, you can give an educated guess of future sales. Remember, one thing harder than forecasting is running a business without a forecast.

 

Copyright © Timothy J. Berry, 2006. All rights reserved.