15+ Free Sales Forecasting Templates

sales forecasting examples

Sales can be forecasted by estimating how many initial contacts a sales rep makes daily. We’d recommend experimenting with each of the above methods and assessing which are the most accurate for your company. Then, you simply add up the total value of each of the deals, and there’s your forecast.

sales forecasting examples

See how revVana can help you create more accurate sales forecasts today. Similar to opportunity stage forecasting, length of sales cycle forecasting relies on accurate data regarding your sales pipeline. Rather than looking at the probability of closing, it evaluates the time a lead should take to close. This approach is perfect for those businesses that need to perform real-world experiments to gather useful information. A new business can use sales forecasting to use its sales data to predict where future sales can come from. This can limit the cost since it’s an effective way of having a busy sales pipeline.

Develop a unit sales projection

That’s because if you’re savvy with a bit of tech, you can get your sales forecasting software to take care of the whole thing for you or at least help you get there much faster. Multi-variable sales forecasts are a little complicated, but they’re the most accurate around. Then, you’ll multiply each deal’s relevant close likelihood by its expected revenue, add it all up, and there’s your sales forecast. You’re going to look at historical sales records (i.e., sales volumes and revenue figures for previous quarters) and use them to estimate future sales.

Add the estimated number of customers, average sale per customer, and average cost per sale. Once you’ve entered those values, pre-built formulas will calculate the total sales, gross profit, total expenses, and net profit for a 12-month period. This customizable sales forecast template is designed to forecast sales for a 36-month time period. Enter the number of units sold, unit price, and unit cost of goods sold (CoGS).

How to Achieve Accurate Sales Forecasts

It calculates your churn and retention rate based on the number of paying customers at the end of the period compared to the number at the beginning, plus the number of new customers added. Knowing your churn rate is essential since a high or increasing rate of customer turnover could indicate problems with your organization or its products or services. A retail sales projection template forecasts revenue for brick-and-mortar stores since it includes data related to foot traffic. https://www.bookstime.com/articles/how-to-calculate-total-equity The retail sales template calculates projected revenue by year based on foot traffic, the percentage of foot traffic that enters the store, and the scale of conversions or those who make a purchase. Since it has a field for “other revenue,” it can be used by retail stores selling online. Included on this page, you’ll find a sales forecast sample, a 12-month sales forecasting template for multiple products, a sales forecast presentation example, and many more helpful templates.

sales forecasting examples

Without accounting for future sales costs, you will likely be disappointed by your actual gains. If this is the next model in a series, you can look at previous versions to see how your customers bought the product. When you are introducing a completely sales forecasting new concept, you can look at past solutions. What solutions did customers previously use to accomplish what your new product accomplishes? You can start to predict the end of the sales cycle by looking at the beginning through reasonable success rates.

Month-to-Month Sales Forecast Template

If your business is new or doesn’t have much historical sales data, the best method for you would be intuitive forecasting. The method you choose will depend on a few factors, including the age of your business, the size of your sales team and pipelines, and the quality of your sales data and data tracking habits. Some sales managers simply ask their reps to estimate the likelihood of closing.

  • You anticipate a percentage of the market share and arrive at your forecasted number.
  • Hiring, payroll, compensation, inventory management, and marketing all depend on it.
  • They can be cost-effective for a new business, keep sales teams and reps informed, and more.
  • By incorporating state-of-the-art tools into an integrated approach for data analysis, organizations can transform sales forecasting into a strategic advantage.

Part of creating a sales plan is forecasting long-term revenue goals and sales projections, then laying out the strategies and tactics you’ll use to hit your performance goals. Long-term sales projection templates usually provide three- to five-year projections. Once you have your sales process, sales quota, and CRM in place, you can choose a sales forecasting method. Managers use reps’ sales forecasts to estimate the business their team will close. The VP of Sales uses department forecasts to project organization sales.

Here are five other analytical methods you can use to do sales forecasting in your organization. These methods are typically used in various types of businesses from SMB to Enterprise. Accurate sales forecasting influences not only the sales organization but also the entire business as a whole.

  • This consistency increases the accuracy of the data — an important aspect considering the fact that 79% of sales organizations miss their sales forecast by more than 10 percent.
  • Then a percentage is assigned to each stage to calculate the probability of a deal.
  • A lot of things beyond your team and control will affect your ability to predict with accuracy.
  • Sales revenue is how businesses make money – and if you can’t even venture a guess as to how much revenue you should have available in the coming year, then you’re likely to under- or over-budget.
  • The study also suggested explicitly writing down things that may be wrong about the forecast.

As with any type of business plan, the data you use to generate your forecasts affects its accuracy. Having solid, real-time sales data aggregated from a variety of up-to-date sources leads to more reliable forecasting and better business insights. Gather regular feedback from your team about what‘s working and what’s not. Hold your reps accountable for their performance against your sales quotas and sales forecasts. After all, they are the closest to and most familiar with your prospects and overall sales performance as a company. CRMs, like the HubSpot CRM, give your sales reps a database for tracking opportunities to give you accurate close predictions.