Sales forecasting for any business is hard enough to get it right without all the ways we get it wrong. Now more than ever, managing your Sales forecasting is really important for every business and very much misunderstood.
Most people fear forecasting. So why do people and businesses hate forecasting? It's mostly because of myths and misunderstandings. Such as, among others, these three:
Sales Forecasting Myth 1: It's About Accurate Forecasting
Not really. What's much more important is structuring a Sales forecasting so we can track results—make it match your accounting input—and then following up. Structure it for tracking, then track it, and then, after review, make the management decisions around the correct information.
Sales Forecasting Myth 2: It's for Experts
Sales forecasting is a matter of good educated guessing in rows and columns on a spreadsheet. Real people, the ones who run the business, think about what they can realistically expect. Technical analysis isn't what makes forecasting work. Common sense and frequent review make forecasting work.
Sales Forecasting Myth 3: You Can Manage Without it
Managing a company without sales forecasting—the forecast, the actual results, and the management that follows—is about as smart as driving a car without a steering wheel, or maybe I should say with your windshield covered in black paint.