{"id":6931,"date":"2021-07-22T05:09:54","date_gmt":"2021-07-22T05:09:54","guid":{"rendered":"https:\/\/www.engagebay.com\/blog\/?p=6931"},"modified":"2025-10-31T14:12:52","modified_gmt":"2025-10-31T14:12:52","slug":"sales-forecasting-strategies","status":"publish","type":"post","link":"https:\/\/www.engagebay.com\/blog\/sales-forecasting-strategies\/","title":{"rendered":"Sales Forecasting: Comprehensive Guide For Small Business Owners"},"content":{"rendered":"<p>The best sales forecasting strategies for small businesses use a combination of accurate data and good judgment.<\/p>\n<p>Sales forecasts give you an idea about how much product to order, which is one of the most important decisions you will make in your company.<\/p>\n<p><span style=\"font-weight: 400;\">Deciding a bank for your small business? Here are the best <\/span><span style=\"font-weight: 400;\">bank for small businesses<\/span><span style=\"font-weight: 400;\">.<\/span><\/p>\n<p>However, there are many different ways to approach sales forecasting and it can be difficult to know what <a href=\"https:\/\/www.engagebay.com\/blog\/sales-strategy\/\">sales strategy<\/a> will work best for your business.<\/p>\n<p>To forecast sales accurately, you need a <a href=\"https:\/\/www.engagebay.com\/crm\/sales-automation\">sales automation software<\/a> that can help you implement proven and <strong>effective sales forecasting strategies<\/strong>.<\/p>\n\r\n            <script>\r\n                var EhAPI = EhAPI || {}; \r\n                EhAPI.after_load = function() {\r\n                    EhAPI.set_account('ktb76s1540fl2hnhbqnrtd2npb', 'our');\r\n                    EhAPI.execute('rules');\r\n                };\r\n                (function(d, s, f) {\r\n                    var sc = document.createElement(s);\r\n                    sc.type = 'text\/javascript';\r\n                    sc.async = true;\r\n                    sc.src = f;\r\n                    var m = document.getElementsByTagName(s)[0];\r\n                    m.parentNode.insertBefore(sc, m);   \r\n                })(document, 'script', '\/\/d2p078bqz5urf7.cloudfront.net\/jsapi\/ehform.js');\r\n            <\/script>\r\n            <script>\r\n                function waitForEhForms() {\r\n                    const interval = 100; \/\/ Check every 100ms\r\n                    const checkAndLoad = () => {\r\n                        const params = new URLSearchParams(window.location.search);\r\n                        const elementorPreviewParam = params.get('elementor-preview');\r\n                        if (elementorPreviewParam && typeof EhForms !== 'undefined' && typeof EhForms.loadForms === 'function') {\r\n                            EhForms.loadForms();\r\n                            console.log('EhForms.loadForms() called successfully.');\r\n                        } else {\r\n                            setTimeout(checkAndLoad, interval);\r\n                        }\r\n                    };\r\n                    checkAndLoad();\r\n                }\r\n                \/\/ Call the function\r\n                waitForEhForms();\r\n            <\/script>\r\n        <div class='engage-hub-form-embed' id='eh_form_5161654467690496' data-id='5161654467690496'><\/div>\n<p>This powerful tool also allows users to <strong>automatically generate reports<\/strong>, create intelligent sales forecasts, and analyze key customer data, all from a single platform.<\/p>\n<p>Having the right sales forecast software in place is one of the <strong>best solutions for small business owners<\/strong> when it comes to implementing good forecasting strategies.<\/p>\n<p>In this comprehensive guide blog post, we explain the important elements of sales forecasting, like <strong>sales projection<\/strong>, sales prediction, sales revenue forecast, and more.<\/p>\n<p>We also share powerful and proven sales forecasting strategies to help your small business, and even some simple forecasting formulae you can punch into Excel, so keep reading.<\/p>\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_74 ez-toc-wrap-left counter-hierarchy ez-toc-counter ez-toc-grey ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<span class=\"ez-toc-title-toggle\"><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/www.engagebay.com\/blog\/sales-forecasting-strategies\/#What_Is_a_Sales_Forecast\" >What Is a Sales Forecast?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/www.engagebay.com\/blog\/sales-forecasting-strategies\/#The_Importance_of_Sales_Forecasting\" >The Importance of Sales Forecasting<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/www.engagebay.com\/blog\/sales-forecasting-strategies\/#1_Map_out_Sales_Growth\" >#1. Map out Sales Growth<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/www.engagebay.com\/blog\/sales-forecasting-strategies\/#2_Ensure_You_Have_the_Right_Resources\" >#2. Ensure You Have the Right Resources<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/www.engagebay.com\/blog\/sales-forecasting-strategies\/#3_Plan_Your_Sales_Budget\" >#3. Plan Your Sales Budget<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/www.engagebay.com\/blog\/sales-forecasting-strategies\/#4_Anticipate_Revenue\" >#4. Anticipate Revenue<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-7\" href=\"https:\/\/www.engagebay.com\/blog\/sales-forecasting-strategies\/#5_Predict_Product_Interest\" >#5. Predict Product Interest<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-8\" href=\"https:\/\/www.engagebay.com\/blog\/sales-forecasting-strategies\/#6_Attract_Investors\" >#6. Attract Investors<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-9\" href=\"https:\/\/www.engagebay.com\/blog\/sales-forecasting-strategies\/#7_Boost_Stock_Market_Prices\" >#7. Boost Stock Market Prices<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-10\" href=\"https:\/\/www.engagebay.com\/blog\/sales-forecasting-strategies\/#How_to_Forecast_Sales\" >How to Forecast Sales<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-11\" href=\"https:\/\/www.engagebay.com\/blog\/sales-forecasting-strategies\/#1_Pipeline_Forecasting\" >#1. Pipeline Forecasting<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-12\" href=\"https:\/\/www.engagebay.com\/blog\/sales-forecasting-strategies\/#2_Historical_Forecasting\" >#2. Historical Forecasting<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-13\" href=\"https:\/\/www.engagebay.com\/blog\/sales-forecasting-strategies\/#3_Intuitive_Forecasting\" >#3. Intuitive Forecasting<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-14\" href=\"https:\/\/www.engagebay.com\/blog\/sales-forecasting-strategies\/#4_Length_of_Sales_Cycle_Forecasting\" >#4. Length of Sales Cycle Forecasting<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-15\" href=\"https:\/\/www.engagebay.com\/blog\/sales-forecasting-strategies\/#5_Opportunity_Stage_Forecasting\" >#5. Opportunity Stage Forecasting<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-16\" href=\"https:\/\/www.engagebay.com\/blog\/sales-forecasting-strategies\/#6_Multi-Variable_Analysis\" >#6. Multi-Variable Analysis<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-17\" href=\"https:\/\/www.engagebay.com\/blog\/sales-forecasting-strategies\/#7_Times-Series_Forecasting\" >#7. Times-Series Forecasting<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-18\" href=\"https:\/\/www.engagebay.com\/blog\/sales-forecasting-strategies\/#How_Do_You_Calculate_Sales_Forecasts\" >How Do You Calculate Sales Forecasts?<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-19\" href=\"https:\/\/www.engagebay.com\/blog\/sales-forecasting-strategies\/#Step_1_Add_in_Past_Sales_Data_Up_to_Eight_Quarters_Worth\" >Step 1: Add in Past Sales Data, Up to Eight Quarters\u2019 Worth<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-20\" href=\"https:\/\/www.engagebay.com\/blog\/sales-forecasting-strategies\/#Step_2_Make_a_Seasonality_Column_but_Leave_It_Blank\" >Step 2: Make a Seasonality Column but Leave It Blank<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-21\" href=\"https:\/\/www.engagebay.com\/blog\/sales-forecasting-strategies\/#Step_3_Fill_in_Your_Sales_Projections\" >Step 3: Fill in Your Sales Projections<\/a><ul class='ez-toc-list-level-4' ><li class='ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-22\" href=\"https:\/\/www.engagebay.com\/blog\/sales-forecasting-strategies\/#Step_1_Add_in_Past_Sales_Data_Up_to_12_Quarters_Worth\" >Step 1: Add in Past Sales Data, Up to 12 Quarters Worth<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-23\" href=\"https:\/\/www.engagebay.com\/blog\/sales-forecasting-strategies\/#Step_2_Add_in_Your_Sales_Data\" >Step 2: Add in Your Sales Data<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-24\" href=\"https:\/\/www.engagebay.com\/blog\/sales-forecasting-strategies\/#Step_3_Incorporate_Your_Moving_Average_and_Centered_Moving_Average\" >Step 3: Incorporate Your Moving Average and Centered Moving Average<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-25\" href=\"https:\/\/www.engagebay.com\/blog\/sales-forecasting-strategies\/#Step_4_Autofill_Your_Trend_Column\" >Step 4: Autofill Your Trend Column<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-26\" href=\"https:\/\/www.engagebay.com\/blog\/sales-forecasting-strategies\/#Step_5_Factor_in_Seasonality\" >Step 5: Factor in Seasonality<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-27\" href=\"https:\/\/www.engagebay.com\/blog\/sales-forecasting-strategies\/#Step_6_Figure_out_Average_Seasonality_by_Quarter\" >Step 6: Figure out Average Seasonality by Quarter<\/a><\/li><\/ul><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-28\" href=\"https:\/\/www.engagebay.com\/blog\/sales-forecasting-strategies\/#Sales_Forecast_Templates_and_Examples\" >Sales Forecast Templates and Examples<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-29\" href=\"https:\/\/www.engagebay.com\/blog\/sales-forecasting-strategies\/#Templates\" >Templates<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-30\" href=\"https:\/\/www.engagebay.com\/blog\/sales-forecasting-strategies\/#Examples\" >Examples<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-31\" href=\"https:\/\/www.engagebay.com\/blog\/sales-forecasting-strategies\/#How_Can_EngageBay_CRM_Help_in_Forecasting_Sales\" >How Can EngageBay CRM Help in Forecasting Sales?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-32\" href=\"https:\/\/www.engagebay.com\/blog\/sales-forecasting-strategies\/#Conclusion\" >Conclusion<\/a><\/li><\/ul><\/nav><\/div>\n\n<h2><span class=\"ez-toc-section\" id=\"What_Is_a_Sales_Forecast\"><\/span>What Is a Sales Forecast?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>Let&#8217;s begin with sales forecasting definition.<\/p>\n<p>What does it mean to forecast your sales?<\/p>\n<p>Sales forecasting <strong>predicts what your <a class=\"\" style=\"display: inline !important; width: auto !important;\" href=\"https:\/\/www.engagebay.com\/blog\/sales-pipeline-stages\/\" target=\"_blank\" rel=\"noopener noreferrer\" data-wpil-post-to-id=\"3862\">sales pipeline<\/a> may look like<\/strong> in the future.<\/p>\n<p><img decoding=\"async\" class=\"aligncenter wp-image-13734 size-full\" src=\"https:\/\/www.engagebay.com\/blog\/wp-content\/uploads\/2021\/07\/EB-crm-bg.gif\" alt=\"crm\" width=\"1366\" height=\"656\"><\/p>\n<p>Sales forecasting isn\u2019t random. <span style=\"font-size: 16px;\">If it was, it\u2019d be pointless. <\/span><\/p>\n<p><span style=\"font-size: 16px;\">Instead, it\u2019s based on actual <\/span>sales data and trends<span style=\"font-size: 16px;\">. While it doesn\u2019t hit the mark every single time, you can <\/span><strong style=\"font-size: 16px;\">increase your forecast<\/strong><span style=\"font-size: 16px;\"><strong> accuracy<\/strong> by using up-to-date information and the right software. <\/span><\/p>\n<p><span style=\"font-size: 16px;\">Besides that, you also want to rely on current trends in economics and your industry to shape what will become your future <strong>sales prediction<\/strong>.<\/span><\/p>\n<p>Newer companies that don\u2019t yet have years of data to review will have to use trends only.<\/p>\n<p>Competitive intelligence and <a class=\"\" style=\"display: inline !important; width: auto !important;\" href=\"https:\/\/www.engagebay.com\/blog\/market-research-methods\/\" target=\"_blank\" rel=\"noopener noreferrer\" data-wpil-post-to-id=\"5329\">market research<\/a> can also help.<\/p>\n<p>In the meantime, keep track of your company\u2019s sales over the coming weeks and months.<\/p>\n<p>Then, you can eventually use this information to <strong>shape your own sales forecast<\/strong>.<\/p>\n<p>When you do, you may notice the accuracy of your sales predictions going up.<\/p>\n<blockquote><p><a class=\"fasc-button fasc-size-large fasc-type-flat fasc-rounded-medium\" style=\"background-color: #33809e; color: #ffffff;\" target=\"_blank\" rel=\"noopener\" href=\"https:\/\/www.engagebay.com\/blog\/sales-forecasting-tools\/\">Also read: 6 Sales Forecasting Tools That Every Business Needs<\/a><\/p><\/blockquote>\n<h2><span class=\"ez-toc-section\" id=\"The_Importance_of_Sales_Forecasting\"><\/span>The Importance of Sales Forecasting<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><span style=\"font-size: 16px;\">We\u2019ve explained what is <\/span>forecasting sales,<span style=\"font-size: 16px;\"> and in this section, you\u2019ll discover plenty of <\/span><strong style=\"font-size: 16px;\">reasons to forecast sales<\/strong><span style=\"font-size: 16px;\">, especially if you have a small business.<\/span><\/p>\n<h3><span class=\"ez-toc-section\" id=\"1_Map_out_Sales_Growth\"><\/span>#1. Map out Sales Growth<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>The first and most obvious reason to <strong>forecast your company\u2019s sales<\/strong> is to plan for the growth of your sales team.<\/p>\n<p>Will they make more customers out of leads? How many conversions can you expect given the past performance, months or years back?<\/p>\n<p>Will your customer base grow to the point where you need more salespeople as part of your company?<\/p>\n<p>These are all important questions. If you have to make significant changes to your sales team, you can predict that with <strong>sales forecast reports<\/strong>.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"2_Ensure_You_Have_the_Right_Resources\"><\/span>#2. Ensure You Have the Right Resources<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>You want to accommodate your sales team so their job is as easy to do as possible.<\/p>\n<p>To that end, they will need resources to <a href=\"https:\/\/www.engagebay.com\/crm\/crm-deals\">close deals<\/a> and convert leads quickly. That\u2019s <strong>customer relationship management (CRM) software<\/strong>.<\/p>\n<p>By planning for your team\u2019s sales growth, you can obtain all the resources you need ahead of time.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"3_Plan_Your_Sales_Budget\"><\/span>#3. Plan Your Sales Budget<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>Whether adding new members to your company\u2019s sales team or getting other resources, everything costs.<\/p>\n<p>Every company should set a budget at the start of the year and do their best to stick to it.<\/p>\n<p>Sure, things happen without warning, and sometimes that can drain more of the budget than anticipated.<\/p>\n<p>In general, though, you should have a <strong>predictable budget that accommodates<\/strong> your company\u2019s basic needs.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"4_Anticipate_Revenue\"><\/span>#4. Anticipate Revenue<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>We\u2019ve talked enough about spending money. Now let\u2019s discuss earning it. Your sales team are the big money-makers at your company, but how much will they bring in for the coming year?<\/p>\n<p>As you probably guessed, you can plan for this as well by <strong>forecasting your sales<\/strong>.<\/p>\n<p>It almost sounds like a dream to know roughly how much money your company can generate. However, all the large enterprises out there are already using sales software like <a href=\"https:\/\/www.engagebay.com\/blog\/pipedrive-vs-hubspot-vs-engagebay\/\">HubSpot or EngageBay<\/a> to anticipate their annual revenues.<\/p>\n<p>As we\u2019ll explain in the next few points, there are a lot of other related benefits to predicting your cash flow.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"5_Predict_Product_Interest\"><\/span>#5. Predict Product Interest<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>While you\u2019re reviewing your recent income to plan for what\u2019s to come next year, don\u2019t forget to look at which of your products and services sold the most. This can be a great indicator of what may continue to sell.<\/p>\n<p>Sure, trends and preferences change, but if you\u2019ve had a consistently <strong>best-selling item<\/strong> that made you most of your money, don\u2019t forget that as the calendar year changes.<\/p>\n<p>You should prioritize this top-selling product for the year ahead. You could even roll out a related product and hope it generates as much success and revenue.<\/p>\n<blockquote><p><a class=\"fasc-button fasc-size-large fasc-type-flat fasc-rounded-medium ico-fa fasc-ico-before fa-arrow-circle-right\" style=\"background-color: #33809e; color: #ffffff;\" target=\"_blank\" rel=\"noopener\" href=\"https:\/\/www.engagebay.com\/blog\/okr-examples\/\">Read also: OKR Examples That Bring Out The Best In Different Teams<\/a><\/p><\/blockquote>\n<h3><span class=\"ez-toc-section\" id=\"6_Attract_Investors\"><\/span>#6. Attract Investors<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>Small and mid-sized companies especially can always use more money.<\/p>\n<p>If you have someone who\u2019s interested in your company and truly believes in what you do, they may choose to contribute as an investor.<\/p>\n<p>Sure, you could find investors the good, old-fashioned way, such as through networking.<\/p>\n<p>You can also let them come to you. One way to get investors knocking on your door is by establishing what you believe your company\u2019s <strong>sales goals<\/strong> will be as the year\u2019s first quarter gets underway.<\/p>\n<p>The more accurate you are with your sales forecast, the more <strong>investors can be interested in working with you<\/strong>.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"7_Boost_Stock_Market_Prices\"><\/span>#7. Boost Stock Market Prices<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><img decoding=\"async\" class=\"aligncenter wp-image-11790 \" src=\"https:\/\/www.engagebay.com\/blog\/wp-content\/uploads\/2019\/10\/stock-market.gif\" alt=\"stock-market\" width=\"341\" height=\"191\"><\/p>\n<p>Another benefit of accurate revenue prediction through sales forecasting?<\/p>\n<p>Your <a href=\"https:\/\/betterthisworld.com\/money\/the-evolution-of-stock-market-ai-software-from-prediction-to-strategy\/\" target=\"_blank\" rel=\"noopener\" data-wpel-link=\"internal\">stock prices<\/a> can go up when you share and promote your sales report.<\/p>\n<p>As the year progresses and your investors realize your predictions were quite accurate, your stock prices could climb even higher.<\/p>\n<blockquote><p><a class=\"fasc-button fasc-size-large fasc-type-flat fasc-rounded-medium\" style=\"background-color: #33809e; color: #ffffff;\" target=\"_blank\" rel=\"noopener\" href=\"https:\/\/www.engagebay.com\/blog\/what-is-restaurant-crm\/\">Read more:&nbsp;What Is Restaurant CRM Software &amp; Which One Suits A Small Business?<\/a><\/p><\/blockquote>\n<h2><span class=\"ez-toc-section\" id=\"How_to_Forecast_Sales\"><\/span>How to Forecast Sales<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>As we\u2019ve seen by now, there are plenty of reasons to begin forecasting your company\u2019s sales.<\/p>\n<p>You want to get started, but how do you even go about doing it?<\/p>\n<div class=\"ast-oembed-container \" style=\"height: 100%;\"><iframe title=\"How To Predict Sales Forecast For Startup Business - 3 Accurate Steps (Ep. #43)\" width=\"500\" height=\"281\" src=\"https:\/\/www.youtube.com\/embed\/vZWWyWl5cYw?feature=oembed\" frameborder=\"0\" allow=\"accelerometer; autoplay; clipboard-write; encrypted-media; gyroscope; picture-in-picture; web-share\" referrerpolicy=\"strict-origin-when-cross-origin\" allowfullscreen><\/iframe><\/div>\n<p>It\u2019s important that you use <strong>proven sales forecasting methods<\/strong> and not just any old thing that seems convenient at the time.<\/p>\n<p>Otherwise, you\u2019re only contributing to the trend of inaccuracies associated with sales forecasting.<\/p>\n<p>For instance, a 2016 report from SiriusDecisions notes there\u2019s a pretty wide margin of error that can occur with this type of forecasting.<\/p>\n<p>Most sales companies (79%) were quite inaccurate with their own predictions, wrongly forecasting by greater than 10%. That\u2019s quite a lot of companies making such big errors!<\/p>\n<p>The above image shows the range of accuracy you want to aim for with <strong>your own <a href=\"https:\/\/www.saleshacker.com\/how-to-forecast-sales\/\">sales forecasting<\/a><\/strong>. As you can see, anything that\u2019s under, at, or over 10% incorrect is considered terribly inaccurate.<\/p>\n<p>If the final sales come in 5% of your predicted range, that\u2019s good.<\/p>\n<p>To improve your own prediction accuracy, you may want to use proven<strong> sales forecasting types<\/strong>.<\/p>\n<p>We&#8217;ll discuss them in detail here.<\/p>\n<p><img decoding=\"async\" class=\"aligncenter wp-image-11770 size-full\" src=\"https:\/\/www.engagebay.com\/blog\/wp-content\/uploads\/2019\/07\/crm-metrics.gif\" alt=\"crm-metrics\" width=\"480\" height=\"270\"><\/p>\n<h3><span class=\"ez-toc-section\" id=\"1_Pipeline_Forecasting\"><\/span>#1. Pipeline Forecasting<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>The first forecasting method we\u2019ve got for you is admittedly one of the more complicated ones.<\/p>\n<p>It\u2019s known as pipeline forecasting. With this, you track your sales pipeline for opportunities. Then, implementing opportunity value, win rate, and other variables, you can assume your closing rate.<\/p>\n<p>It\u2019s much better to use software for <strong>pipeline forecasting<\/strong> because, as we said, it\u2019s a bit complex.<\/p>\n<p>You can\u2019t provide imperfect data or mess up any of the inputs with pipeline forecasting or you\u2019ll get an inaccurate result.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"2_Historical_Forecasting\"><\/span>#2. Historical Forecasting<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>As the name tells you, historical forecasting is all based on what\u2019s happened in the past.<\/p>\n<p>You can rely on this to <strong>track data by the week, the month, or the year<\/strong>. Obviously, the newer your company is, the less viable historical forecasting becomes.<\/p>\n<p>If you haven\u2019t yet made historical data to review over at least two years, then you have nothing to measure your current results against.<\/p>\n<p>Even if you are a more established company, you have to watch out for some pitfalls with historical forecasting.<\/p>\n<p>For example, this method doesn\u2019t accommodate for the fact that buyer demand can fluctuate, which it naturally does. It also doesn\u2019t take into account that some sales are seasonal.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"3_Intuitive_Forecasting\"><\/span>#3. Intuitive Forecasting<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>Do you have a good intuition? If so, then you might want to try <strong>intuitive forecasting<\/strong> for your company.<\/p>\n<p>This is a more opinion-based means of forecasting sales. Your sales team comes to the rescue yet again here, as their opinions and predictions get rolled into one forecast.<\/p>\n<p>Does it work? It can.<\/p>\n<p>Mostly, we\u2019d recommend intuitive forecasting for those companies that can\u2019t <strong>use historical forecasting<\/strong> because they\u2019re too new.<\/p>\n<p>Just triple-check for inaccuracies.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"4_Length_of_Sales_Cycle_Forecasting\"><\/span>#4. Length of Sales Cycle Forecasting<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>If you\u2019re still not sure which <strong>forecasting method<\/strong> to use, we\u2019ve got plenty more.<\/p>\n<p>Next is the length of the sales cycle forecasting.<\/p>\n<p>This one focuses more on sales deal length, using it as the yardstick for when future deals may close. You can also track <strong>sales cycle length<\/strong> and use the data much the same way.<\/p>\n<p><img decoding=\"async\" class=\"aligncenter wp-image-12257 size-full\" src=\"https:\/\/www.engagebay.com\/blog\/wp-content\/uploads\/2020\/06\/sales-forcasting.png\" alt=\"sales-forcasting\" width=\"1366\" height=\"768\" srcset=\"https:\/\/www.engagebay.com\/blog\/wp-content\/uploads\/2020\/06\/sales-forcasting.png 1366w, https:\/\/www.engagebay.com\/blog\/wp-content\/uploads\/2020\/06\/sales-forcasting-300x169.png 300w, https:\/\/www.engagebay.com\/blog\/wp-content\/uploads\/2020\/06\/sales-forcasting-1024x576.png 1024w, https:\/\/www.engagebay.com\/blog\/wp-content\/uploads\/2020\/06\/sales-forcasting-768x432.png 768w, https:\/\/www.engagebay.com\/blog\/wp-content\/uploads\/2020\/06\/sales-forcasting-595xh.png 595w\" sizes=\"(max-width: 1366px) 100vw, 1366px\" \/><\/p>\n<p>Feel free to incorporate all the different sales cycles into your forecasting, including those for <a href=\"https:\/\/www.engagebay.com\/resources\/difference-between-lead-prospect\">leads versus qualified prospects<\/a>.<\/p>\n<p>Your <a href=\"https:\/\/www.engagebay.com\/blog\/sales-pipeline-stages\/\">sales pipelines<\/a> must be rock solid for this method to work, but it\u2019s one of the better ones.<\/p>\n<p>There\u2019s only room for objectivity here, no <strong>opinions-based predictions<\/strong> like with intuitive forecasting.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"5_Opportunity_Stage_Forecasting\"><\/span>#5. Opportunity Stage Forecasting<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>On the note of your sales pipeline, while you\u2019re tracking it so closely, you might as well give the opportunity stage forecasting a try.<\/p>\n<p>This <strong>forecasting reviews deal stages<\/strong> through the pipeline, making assumptions on the likelihood of <a href=\"https:\/\/www.engagebay.com\/resources\/closing-deals\">closing the deal<\/a>.<\/p>\n<p>You select a reporting period based on the quota of your sales team and your average sales cycle length. These periods may be monthly, quarterly, or annually.<\/p>\n<p>Once you figure that part out, you do some multiplication. You want to take your deal closing probability and multiply it by the potential value of the deal.<\/p>\n<p>Continue multiplying until you\u2019re done with each deal occupying your pipeline. Then tally up the multiplied values and you\u2019ll see a more <strong>predictive forecast<\/strong>.<\/p>\n<p>As another complex <strong>sales forecasting strategy<\/strong>, opportunity stage forecasting can be riddled with inaccuracies. Older and newer deals don\u2019t get distinguished, muddying the waters that are your results.<\/p>\n<p>Further, if you don\u2019t have historical data to rely on\u2014like for new businesses\u2014you can\u2019t really use this method.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"6_Multi-Variable_Analysis\"><\/span>#6. Multi-Variable Analysis<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>A multi-variable analysis combines elements like the performances of your representatives, types of opportunities, and the length of your sales cycle. What you get is a more accurate means of <strong>forecasting your sales<\/strong> for the quarter or the year.<\/p>\n<p>You\u2019ll want to use analytics software to generate your multi-variable analyses for accuracy.<\/p>\n<p>Also, clean data matters big time here, so make sure your sales team reports all the deals correctly.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"7_Times-Series_Forecasting\"><\/span>#7. Times-Series Forecasting<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>Moving away from what\u2019s in your sales pipeline for a moment, yet another <strong>forecasting method<\/strong> you can use is time-series forecasting.<\/p>\n<p>This accommodates for the season, cyclical changes in business, and industry trends.<\/p>\n<p>For newer companies that don\u2019t have a lot of background, this is a good forecasting method to consider.<\/p>\n\r\n            <script>\r\n                var EhAPI = EhAPI || {}; \r\n                EhAPI.after_load = function() {\r\n                    EhAPI.set_account('ktb76s1540fl2hnhbqnrtd2npb', 'our');\r\n                    EhAPI.execute('rules');\r\n                };\r\n                (function(d, s, f) {\r\n                    var sc = document.createElement(s);\r\n                    sc.type = 'text\/javascript';\r\n                    sc.async = true;\r\n                    sc.src = f;\r\n                    var m = document.getElementsByTagName(s)[0];\r\n                    m.parentNode.insertBefore(sc, m);   \r\n                })(document, 'script', '\/\/d2p078bqz5urf7.cloudfront.net\/jsapi\/ehform.js');\r\n            <\/script>\r\n            <script>\r\n                function waitForEhForms() {\r\n                    const interval = 100; \/\/ Check every 100ms\r\n                    const checkAndLoad = () => {\r\n                        const params = new URLSearchParams(window.location.search);\r\n                        const elementorPreviewParam = params.get('elementor-preview');\r\n                        if (elementorPreviewParam && typeof EhForms !== 'undefined' && typeof EhForms.loadForms === 'function') {\r\n                            EhForms.loadForms();\r\n                            console.log('EhForms.loadForms() called successfully.');\r\n                        } else {\r\n                            setTimeout(checkAndLoad, interval);\r\n                        }\r\n                    };\r\n                    checkAndLoad();\r\n                }\r\n                \/\/ Call the function\r\n                waitForEhForms();\r\n            <\/script>\r\n        <div class='engage-hub-form-embed' id='eh_form_5161654467690496' data-id='5161654467690496'><\/div>\n<h2><span class=\"ez-toc-section\" id=\"How_Do_You_Calculate_Sales_Forecasts\"><\/span>How Do You Calculate Sales Forecasts?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>Now that we\u2019ve shown you several methods and <strong>sales forecasting types<\/strong>, we wanted to take a deeper dive into calculating your own forecasts.<\/p>\n<p>You can do this with formulas; you could even forecast sales in Excel. Yes, we\u2019re talking about the Microsoft program you more than likely have on your work computer right now.<\/p>\n<p>Assuming you are using Excel, we want to keep things uncomplicated for you. The formula you want to follow is as basic as can be. Here it is:<\/p>\n<p><strong>Average seasonality + trend = projected sales<\/strong><\/p>\n<p>Yes, that\u2019s it. And while sure, there are some services that can use Excel to <strong>automate your forecasts<\/strong> for you, you might prefer doing it yourself.<\/p>\n<p>This way, you can see how it\u2019s all done. That hands-on knowledge could make <a href=\"https:\/\/thecfoclub.com\/tools\/best-forecasting-software\/\" target=\"_blank\" rel=\"noopener\" data-wpel-link=\"internal\">forecasting your future<\/a> sales easier in the coming years.<\/p>\n<p>Here are the steps you need to follow when calculating your sales forecast without considering seasonality.<\/p>\n<p>Companies younger than two years old are not eligible to <strong>calculate their forecast<\/strong> using this method or the next one we\u2019re going to share.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"Step_1_Add_in_Past_Sales_Data_Up_to_Eight_Quarters_Worth\"><\/span>Step 1: Add in Past Sales Data, Up to Eight Quarters\u2019 Worth<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>Column A of your Excel spreadsheet should contain the year. The line with the year should be adjacent to quarter one in column B. Leave three blanks spaces under each year in Column A for quarters two through four.<\/p>\n<p>Eight quarters is at least two years\u2019 worth of data, so you should have that much to work with. Make sure each quarter is numbered and not just \u201cquarter one, quarter two, quarter three, and quarter four\u201d repeated over and over. For example, for the second year of data, you should start with \u201cquarter five.\u201d<\/p>\n<p>In Column C, add your <strong>sales for each quarter<\/strong>. You can then autofill column D, or trends, by inputting the following:<\/p>\n<p><strong>=FORECAST(B3,$C$3:$C$10,$B$3:$B$10)<\/strong><\/p>\n<p>Your trends may be up or down depending on your sales results.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"Step_2_Make_a_Seasonality_Column_but_Leave_It_Blank\"><\/span>Step 2: Make a Seasonality Column but Leave It Blank<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>Column E of your Excel spreadsheet should say \u201cseasonality,\u201d but you don\u2019t want to add any values to it at this point.<\/p>\n<p>Remember, seasonal changes are excluded from your <strong>forecasting<\/strong> this time around.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"Step_3_Fill_in_Your_Sales_Projections\"><\/span>Step 3: Fill in Your Sales Projections<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>After the seasonal column, you\u2019ve got Column F for your sales projections. If you\u2019ve done everything correctly to this point, then this column will autofill for you.<\/p>\n<p>How? Excel will calculate your sales projections by tallying your seasonality (column E) and trends (column D).<\/p>\n<p>You can even use Excel to display this data as a linear graph. That might make it easier to visualize your <strong>predicted sales<\/strong>.<\/p>\n<p>Here\u2019s what it may look like. Remember, we\u2019re still excluding seasonality to this point.<\/p>\n<p style=\"text-align: center;\"><img decoding=\"async\" class=\"aligncenter wp-image-10520 size-full\" src=\"https:\/\/www.engagebay.com\/blog\/wp-content\/uploads\/2019\/10\/sales-projections-1.png\" alt=\"sales projections\" width=\"1000\" height=\"600\" srcset=\"https:\/\/www.engagebay.com\/blog\/wp-content\/uploads\/2019\/10\/sales-projections-1.png 1000w, https:\/\/www.engagebay.com\/blog\/wp-content\/uploads\/2019\/10\/sales-projections-1-300x180.png 300w, https:\/\/www.engagebay.com\/blog\/wp-content\/uploads\/2019\/10\/sales-projections-1-768x461.png 768w, https:\/\/www.engagebay.com\/blog\/wp-content\/uploads\/2019\/10\/sales-projections-1-595xh.png 595w\" sizes=\"(max-width: 1000px) 100vw, 1000px\" \/><\/p>\n<p>What if you wanted seasonality in there? Well, open a new spreadsheet in Excel, because we\u2019re starting over again. Here are the steps.<\/p>\n\r\n            <script>\r\n                var EhAPI = EhAPI || {}; \r\n                EhAPI.after_load = function() {\r\n                    EhAPI.set_account('ktb76s1540fl2hnhbqnrtd2npb', 'our');\r\n                    EhAPI.execute('rules');\r\n                };\r\n                (function(d, s, f) {\r\n                    var sc = document.createElement(s);\r\n                    sc.type = 'text\/javascript';\r\n                    sc.async = true;\r\n                    sc.src = f;\r\n                    var m = document.getElementsByTagName(s)[0];\r\n                    m.parentNode.insertBefore(sc, m);   \r\n                })(document, 'script', '\/\/d2p078bqz5urf7.cloudfront.net\/jsapi\/ehform.js');\r\n            <\/script>\r\n            <script>\r\n                function waitForEhForms() {\r\n                    const interval = 100; \/\/ Check every 100ms\r\n                    const checkAndLoad = () => {\r\n                        const params = new URLSearchParams(window.location.search);\r\n                        const elementorPreviewParam = params.get('elementor-preview');\r\n                        if (elementorPreviewParam && typeof EhForms !== 'undefined' && typeof EhForms.loadForms === 'function') {\r\n                            EhForms.loadForms();\r\n                            console.log('EhForms.loadForms() called successfully.');\r\n                        } else {\r\n                            setTimeout(checkAndLoad, interval);\r\n                        }\r\n                    };\r\n                    checkAndLoad();\r\n                }\r\n                \/\/ Call the function\r\n                waitForEhForms();\r\n            <\/script>\r\n        <div class='engage-hub-form-embed' id='eh_form_5161654467690496' data-id='5161654467690496'><\/div>\n<h4><span class=\"ez-toc-section\" id=\"Step_1_Add_in_Past_Sales_Data_Up_to_12_Quarters_Worth\"><\/span>Step 1: Add in Past Sales Data, Up to 12 Quarters Worth<span class=\"ez-toc-section-end\"><\/span><\/h4>\n<p>Just like we did last time, you want to work with a fresh Excel document. Column A is your year and column B is your quarters.<\/p>\n<p>Arrange these two columns the same way you did before, leaving extra space under each year for all the quarters.<\/p>\n<p>The difference is now, instead of only eight quarters\u2019 worth of data, you want 12 quarters. That\u2019s three years.<\/p>\n<h4><span class=\"ez-toc-section\" id=\"Step_2_Add_in_Your_Sales_Data\"><\/span>Step 2: Add in Your Sales Data<span class=\"ez-toc-section-end\"><\/span><\/h4>\n<p>Make column C for your sales. Input the sales for each quarter manually.<\/p>\n<h4><span class=\"ez-toc-section\" id=\"Step_3_Incorporate_Your_Moving_Average_and_Centered_Moving_Average\"><\/span>Step 3: Incorporate Your Moving Average and Centered Moving Average<span class=\"ez-toc-section-end\"><\/span><\/h4>\n<p>Since you\u2019re not replicating the other spreadsheet, here\u2019s where things begin to change. In column D, you want to add a moving average. Then, in column E, a centered moving average.<\/p>\n<p>Hold on a moment. What\u2019s a moving average and centered moving average?<\/p>\n<p>Your moving average, in this case, is just four quarters averaged into one value. This can be any four quarters, so it doesn\u2019t have to be in all in one year.<\/p>\n<p>The centered moving average refers to the average value you get when you take two moving averages and put them together.<\/p>\n<h4><span class=\"ez-toc-section\" id=\"Step_4_Autofill_Your_Trend_Column\"><\/span>Step 4: Autofill Your Trend Column<span class=\"ez-toc-section-end\"><\/span><\/h4>\n<p>You still want the trend column in this Excel spreadsheet, this time in column F. This will be auto-filled once more.<\/p>\n<h4><span class=\"ez-toc-section\" id=\"Step_5_Factor_in_Seasonality\"><\/span>Step 5: Factor in Seasonality<span class=\"ez-toc-section-end\"><\/span><\/h4>\n<p>Okay, with all that legwork out of the way, it\u2019s finally time to determine how seasonality plays a role in your forecast. The seasonality, in this case, is what you get when you take your trends and your sales and subtract one from the other.<\/p>\n<p>Seasonality isn\u2019t always a positive value. If that\u2019s the case, then you undersold compared to what you anticipated you would.<\/p>\n<p>If it is indeed a positive value, then congrats, your company has done well. You may have even exceeded expectations.<\/p>\n<h4><span class=\"ez-toc-section\" id=\"Step_6_Figure_out_Average_Seasonality_by_Quarter\"><\/span>Step 6: Figure out Average Seasonality by Quarter<span class=\"ez-toc-section-end\"><\/span><\/h4>\n<p>If you want to take things a step further, such as determining seasonality by quarter, you can. Let\u2019s say you wanted to focus on your first quarter, your fifth one, and your ninth quarter.<\/p>\n<p>The formula would look a little something like this:<\/p>\n<p><strong>=average(G3,G7,G11)<\/strong><\/p>\n<p>You can switch up any of the quarters by changing the G values in the above formula.<\/p>\n<p>Once you have that data, you can follow the original formula: <strong>average seasonality + trends = projected sales<\/strong> to get your projected sales.<\/p>\n<p>In this case, you\u2019d want to input: =F3+$J$21<\/p>\n<p>Do make sure you review your Excel graph, which now accounts for seasonality.<\/p>\n<p style=\"text-align: center;\"><img decoding=\"async\" class=\"aligncenter wp-image-10521 size-full\" src=\"https:\/\/www.engagebay.com\/blog\/wp-content\/uploads\/2019\/10\/projected-sales.png\" alt=\"projected sales\" width=\"1000\" height=\"600\" srcset=\"https:\/\/www.engagebay.com\/blog\/wp-content\/uploads\/2019\/10\/projected-sales.png 1000w, https:\/\/www.engagebay.com\/blog\/wp-content\/uploads\/2019\/10\/projected-sales-300x180.png 300w, https:\/\/www.engagebay.com\/blog\/wp-content\/uploads\/2019\/10\/projected-sales-768x461.png 768w, https:\/\/www.engagebay.com\/blog\/wp-content\/uploads\/2019\/10\/projected-sales-595xh.png 595w\" sizes=\"(max-width: 1000px) 100vw, 1000px\" \/><\/p>\n<h2><span class=\"ez-toc-section\" id=\"Sales_Forecast_Templates_and_Examples\"><\/span>Sales Forecast Templates and Examples<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>We\u2019ve provided plenty of<strong> forecasting methods and formulas,<\/strong> but if you still need more guidance for getting started, you\u2019ve come to the right place.<\/p>\n<p>In this section, we\u2019ll share our most preferred<strong> sales forecasting<\/strong> examples and templates.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"Templates\"><\/span>Templates<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>The following templates work in Microsoft Excel or Google Sheets, some even in Microsoft Word or PDF. They include either examples or instructions on how to use the template, if not both. Here are our best template picks:<\/p>\n<ul>\n<li>Add various product lines and growth rates to your Excel spreadsheet <a href=\"https:\/\/templatearchive.com\/download\/2996\/\">here<\/a>; <strong>examples and instructions included<\/strong><\/li>\n<li>Toggle more with admin\/marketing costs and growth rates in Excel <a href=\"https:\/\/templatearchive.com\/download\/2987\/\">here<\/a>; no examples, but you do get instructions<\/li>\n<li>Make goods\/services sold and seasonality projections with Microsoft Word <a href=\"https:\/\/templatearchive.com\/download\/2981\/\">here<\/a>; no examples or instructions included<\/li>\n<li>Implement scenario planning in Excel <a href=\"https:\/\/templatearchive.com\/download\/2978\/\">here<\/a>; no examples, but there are instructions<\/li>\n<li>Make sales forecasting using more historical growth data (two years or more) in Excel <a href=\"https:\/\/templatearchive.com\/download\/2975\/\">here<\/a>; no examples or instructions included<\/li>\n<li>Include more shifting marketing conditions in your forecasts in Excel <a href=\"https:\/\/templatearchive.com\/download\/2960\/\">here<\/a>; examples and instructions are both included<\/li>\n<li>Work with longer deals with a greater projected volume in Excel <a href=\"https:\/\/templatearchive.com\/download\/2957\/\">here<\/a>; no examples or instructions included<\/li>\n<li>Add more overhead costs to your projects in Excel <a href=\"https:\/\/templatearchive.com\/download\/2945\/\">here<\/a>; you get examples, but no instructions<\/li>\n<li>Include all your product lines in your forecasting in Excel <a href=\"https:\/\/templatearchive.com\/download\/2942\/\">here<\/a>; you get both examples and instructions<\/li>\n<li>Use this template if you\u2019re a small business or startup beginning with <strong>forecasting in Excel <a href=\"https:\/\/templatearchive.com\/download\/2930\/\">here<\/a><\/strong>; includes neither instructions nor examples<\/li>\n<li>Produce monthly business reports in PDF <a href=\"https:\/\/templatearchive.com\/download\/2921\/\">here<\/a>; comes with both examples and instructions<\/li>\n<\/ul>\n<h3><span class=\"ez-toc-section\" id=\"Examples\"><\/span>Examples<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>Would you like to<strong> see a sales forecast<\/strong> in action?<\/p>\n<p>Here\u2019s one courtesy of <a href=\"https:\/\/articles.bplans.com\/example-initial-sales-forecast-for-a-restaurant\/\">Bplans<\/a>. It\u2019s for a small restaurant.<\/p>\n<p>The establishment makes $1,152 on dinners when the restaurant is at full capacity and $288 on lunches. Keeping that information in mind, here are snapshots of the forecasting for this restaurant.<\/p>\n<p><img decoding=\"async\" class=\"aligncenter wp-image-6937 size-full\" src=\"https:\/\/www.engagebay.com\/blog\/wp-content\/uploads\/2019\/10\/sales-forecasting-examples.png\" alt=\"sales forecasting examples\" width=\"343\" height=\"368\" srcset=\"https:\/\/www.engagebay.com\/blog\/wp-content\/uploads\/2019\/10\/sales-forecasting-examples.png 343w, https:\/\/www.engagebay.com\/blog\/wp-content\/uploads\/2019\/10\/sales-forecasting-examples-280x300.png 280w\" sizes=\"(max-width: 343px) 100vw, 343px\" \/><\/p>\n<p><img decoding=\"async\" class=\"aligncenter wp-image-6938 size-full\" src=\"https:\/\/www.engagebay.com\/blog\/wp-content\/uploads\/2019\/10\/sales-forecast-template.png\" alt=\"sales forecast template\" width=\"624\" height=\"68\" srcset=\"https:\/\/www.engagebay.com\/blog\/wp-content\/uploads\/2019\/10\/sales-forecast-template.png 624w, https:\/\/www.engagebay.com\/blog\/wp-content\/uploads\/2019\/10\/sales-forecast-template-300x33.png 300w, https:\/\/www.engagebay.com\/blog\/wp-content\/uploads\/2019\/10\/sales-forecast-template-595xh.png 595w\" sizes=\"(max-width: 624px) 100vw, 624px\" \/><\/p>\n<p><img decoding=\"async\" class=\"aligncenter wp-image-6939 size-full\" src=\"https:\/\/www.engagebay.com\/blog\/wp-content\/uploads\/2019\/10\/forecast-sales-in-excel.png\" alt=\"forecast sales in excel\" width=\"624\" height=\"173\" srcset=\"https:\/\/www.engagebay.com\/blog\/wp-content\/uploads\/2019\/10\/forecast-sales-in-excel.png 624w, https:\/\/www.engagebay.com\/blog\/wp-content\/uploads\/2019\/10\/forecast-sales-in-excel-300x83.png 300w, https:\/\/www.engagebay.com\/blog\/wp-content\/uploads\/2019\/10\/forecast-sales-in-excel-595xh.png 595w\" sizes=\"(max-width: 624px) 100vw, 624px\" \/><\/p>\n<p style=\"text-align: center;\"><em>Images courtesy of Bplans<\/em><\/p>\n<p>To <strong>calculate this forecast<\/strong>, the theoretical restaurant owner could track their sales over each weekday to get an idea of weekly sales. They could then do some math to figure out what annual sales might look like.<\/p>\n<p>However, restaurants aren\u2019t open every single day of the year, nor are they always at full capacity. This example takes several of these factors into consideration.<\/p>\n<p>For instance, the restaurant isn\u2019t open for lunch hours on the weekend. They also generate a smaller crowd on Monday nights for dinner.<\/p>\n<p>Each month then, the restaurant predicts they\u2019ll sell 1,044 dinners and 370 lunches.<\/p>\n<p>However, in the Excel spreadsheet, the restaurant owner goes even lower than that since they\u2019re a new establishment that doesn\u2019t want to assume too much.<\/p>\n<p>We quite like what Bplans says about <strong>making your own sales forecast<\/strong>: \u201cThese numbers are not magic \u2026 As you work through yours, don\u2019t look for some answer out there in the world, as a right answer to a puzzle; look for ways to break your assumptions down into the logic you need to work with them.\u201d<\/p>\n\r\n            <script>\r\n                var EhAPI = EhAPI || {}; \r\n                EhAPI.after_load = function() {\r\n                    EhAPI.set_account('ktb76s1540fl2hnhbqnrtd2npb', 'our');\r\n                    EhAPI.execute('rules');\r\n                };\r\n                (function(d, s, f) {\r\n                    var sc = document.createElement(s);\r\n                    sc.type = 'text\/javascript';\r\n                    sc.async = true;\r\n                    sc.src = f;\r\n                    var m = document.getElementsByTagName(s)[0];\r\n                    m.parentNode.insertBefore(sc, m);   \r\n                })(document, 'script', '\/\/d2p078bqz5urf7.cloudfront.net\/jsapi\/ehform.js');\r\n            <\/script>\r\n            <script>\r\n                function waitForEhForms() {\r\n                    const interval = 100; \/\/ Check every 100ms\r\n                    const checkAndLoad = () => {\r\n                        const params = new URLSearchParams(window.location.search);\r\n                        const elementorPreviewParam = params.get('elementor-preview');\r\n                        if (elementorPreviewParam && typeof EhForms !== 'undefined' && typeof EhForms.loadForms === 'function') {\r\n                            EhForms.loadForms();\r\n                            console.log('EhForms.loadForms() called successfully.');\r\n                        } else {\r\n                            setTimeout(checkAndLoad, interval);\r\n                        }\r\n                    };\r\n                    checkAndLoad();\r\n                }\r\n                \/\/ Call the function\r\n                waitForEhForms();\r\n            <\/script>\r\n        <div class='engage-hub-form-embed' id='eh_form_5161654467690496' data-id='5161654467690496'><\/div>\n<h2><span class=\"ez-toc-section\" id=\"How_Can_EngageBay_CRM_Help_in_Forecasting_Sales\"><\/span>How Can EngageBay CRM Help in Forecasting Sales?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>This guide has proven that you need to begin <strong>forecasting your sales<\/strong> right away.<\/p>\n<p>As we\u2019ve mentioned, some of the methods and tactics you need for sales forecasts can be quite difficult to do on your own.<\/p>\n<p>The right software can do it all for you.<\/p>\n<p>We started EngageBay as an alternative to more expensive <a href=\"https:\/\/www.engagebay.com\/crm\/sales-crm\">sales<\/a> and marketing software. Our <a class=\"\" style=\"display: inline !important; width: auto !important;\" href=\"https:\/\/www.engagebay.com\/blog\/all-in-one-marketing-suite-for-just-1-dollar-day\/\" target=\"_blank\" rel=\"noopener noreferrer\" data-wpil-post-to-id=\"1586\">all-in-one suite<\/a> includes all the tools you&#8217;ll need to see your small business flourish.<\/p>\n<p>Also, our integrated CRM is always free.<\/p>\n<p>If you happen to use another CRM, we\u2019ll also help you migrate over free of charge.<\/p>\n<p><img decoding=\"async\" class=\"aligncenter wp-image-13795 size-full\" src=\"https:\/\/www.engagebay.com\/blog\/wp-content\/uploads\/2021\/07\/customer-service-dashboard.png\" alt=\"EngageBay Service Dashboard\" width=\"1349\" height=\"625\" srcset=\"https:\/\/www.engagebay.com\/blog\/wp-content\/uploads\/2021\/07\/customer-service-dashboard.png 1349w, https:\/\/www.engagebay.com\/blog\/wp-content\/uploads\/2021\/07\/customer-service-dashboard-300x139.png 300w, https:\/\/www.engagebay.com\/blog\/wp-content\/uploads\/2021\/07\/customer-service-dashboard-1024x474.png 1024w, https:\/\/www.engagebay.com\/blog\/wp-content\/uploads\/2021\/07\/customer-service-dashboard-768x356.png 768w, https:\/\/www.engagebay.com\/blog\/wp-content\/uploads\/2021\/07\/customer-service-dashboard-595xh.png 595w\" sizes=\"(max-width: 1349px) 100vw, 1349px\" \/><\/p>\n<p>Wondering why you should <strong>use a CRM for forecasting sales<\/strong>, especially EngageBay? Here are some ways a CRM can come in handy:<\/p>\n<ul>\n<li>Track sales performance and sales trends using reporting software and tools. You can review these by the month, the quarter, or the year. When predicting future sales success, having this past data to rely on will improve the <strong>accuracy of your forecasting<\/strong>.<\/li>\n<li>Track and filter <a class=\"\" href=\"https:\/\/www.engagebay.com\/blog\/marketing-qualified-leads\/\">leads so only the most qualified<\/a> prospects get to your sales team. Your sales reps can then close more deals, which is reflected in a revenue increase.<\/li>\n<li>Use lead confidence and other features for more accurate estimates of what\u2019s going on in your sales pipeline during any quarter.<\/li>\n<li>Make changes to your<strong> sales pipeline predictions<\/strong> as the year gets underway or other situations arise.<\/li>\n<li>Get on-demand reports detailing your most up-to-date sales forecasting data. This includes sales team quotas, open and closed deals in your company\u2019s sales pipeline, how many deals the team has closed, and projected revenue.<\/li>\n<\/ul>\n<p>Whether you\u2019re a small business just beginning to <strong>track your sales forecasting<\/strong> or a more established company eager to use past data to predict the future, <a href=\"https:\/\/www.engagebay.com\/products\/crm\"><strong>EngageBay CRM<\/strong><\/a> can help.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"Conclusion\"><\/span>Conclusion<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>Sales forecasting is a crucial process for any company.<\/p>\n<p>It can take some time to get used to, even for business owners who are naturally good with numbers.<\/p>\n<p>For those who aren\u2019t as experienced with sales forecasting, it can be especially challenging at first.<\/p>\n<p>This is why we recommend you use software like <a href=\"https:\/\/www.engagebay.com\/crm\/best-crm-small-business\">EngageBay CRM<\/a> &#8212; not only will you save time while you learn the ropes of sales forecasting, your forecasts will become much more accurate than if you tried to do it all on your own.<\/p>\n<p>Unlike other CRM software, <strong>EngageBay<\/strong> is free to use forever.<\/p>\n<p>For a large number of contacts or super-advanced features, you can upgrade to a paid plan and still spend as little as $1 a day on the software.<\/p>\n\r\n            <script>\r\n                var EhAPI = EhAPI || {}; \r\n                EhAPI.after_load = function() {\r\n                    EhAPI.set_account('ktb76s1540fl2hnhbqnrtd2npb', 'our');\r\n                    EhAPI.execute('rules');\r\n                };\r\n                (function(d, s, f) {\r\n                    var sc = document.createElement(s);\r\n                    sc.type = 'text\/javascript';\r\n                    sc.async = true;\r\n                    sc.src = f;\r\n                    var m = document.getElementsByTagName(s)[0];\r\n                    m.parentNode.insertBefore(sc, m);   \r\n                })(document, 'script', '\/\/d2p078bqz5urf7.cloudfront.net\/jsapi\/ehform.js');\r\n            <\/script>\r\n            <script>\r\n                function waitForEhForms() {\r\n                    const interval = 100; \/\/ Check every 100ms\r\n                    const checkAndLoad = () => {\r\n                        const params = new URLSearchParams(window.location.search);\r\n                        const elementorPreviewParam = params.get('elementor-preview');\r\n                        if (elementorPreviewParam && typeof EhForms !== 'undefined' && typeof EhForms.loadForms === 'function') {\r\n                            EhForms.loadForms();\r\n                            console.log('EhForms.loadForms() called successfully.');\r\n                        } else {\r\n                            setTimeout(checkAndLoad, interval);\r\n                        }\r\n                    };\r\n                    checkAndLoad();\r\n                }\r\n                \/\/ Call the function\r\n                waitForEhForms();\r\n            <\/script>\r\n        <div class='engage-hub-form-embed' id='eh_form_5161654467690496' data-id='5161654467690496'><\/div>\n<p>&lt;&lt;<a href=\"https:\/\/www.engagebay.com\/crm\/contact-management-software\">Make faster, informed decisions with the simplest contact management software<\/a><\/p>\n<p>&lt;&lt;<a href=\"https:\/\/www.engagebay.com\/crm\/crm-deals\">EngageBay&#8217;s Deals feature offers you powerful tools to convert every opportunity<\/a><\/p>\n<p><em><strong>??Implement your sales forecasting strategies and boost revenue using <a href=\"https:\/\/app.engagebay.com\/signup\">EngageBay<\/a> \u2013 the simple yet All-in-One marketing and sales CRM for growing companies. Get FREE lifetime access (up to 15 users) from <a href=\"https:\/\/app.engagebay.com\/signup\">here<\/a>&nbsp;??<\/strong><\/em><\/p>\n","protected":false},"excerpt":{"rendered":"<p>The best sales forecasting strategies for small businesses use a combination of accurate data and good judgment. Sales forecasts give [&hellip;]<\/p>\n","protected":false},"author":4,"featured_media":13847,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"site-sidebar-layout":"default","site-content-layout":"default","ast-site-content-layout":"default","site-content-style":"default","site-sidebar-style":"default","ast-global-header-display":"","ast-banner-title-visibility":"","ast-main-header-display":"","ast-hfb-above-header-display":"","ast-hfb-below-header-display":"","ast-hfb-mobile-header-display":"","site-post-title":"","ast-breadcrumbs-content":"","ast-featured-img":"","footer-sml-layout":"","theme-transparent-header-meta":"default","adv-header-id-meta":"","stick-header-meta":"default","header-above-stick-meta":"","header-main-stick-meta":"","header-below-stick-meta":"","astra-migrate-meta-layouts":"set","ast-page-background-enabled":"default","ast-page-background-meta":{"desktop":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"tablet":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"mobile":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""}},"ast-content-background-meta":{"desktop":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"tablet":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"mobile":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""}},"footnotes":""},"categories":[158],"tags":[2587,2588,2589],"class_list":["post-6931","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-sales","tag-sales-forecasting","tag-sales-plan","tag-sales-projections"],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v21.3 (Yoast SEO v25.3.1) - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Sales Forecasting: Comprehensive Guide for Small Business Owners<\/title>\n<meta name=\"description\" content=\"Sales forecasting is crucial. This comprehensive guide blog post will explain how to forecast sales for your small business.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.engagebay.com\/blog\/sales-forecasting-strategies\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Sales Forecasting: Comprehensive Guide For Small Business Owners\" \/>\n<meta property=\"og:description\" content=\"Sales forecasting is crucial. This comprehensive guide blog post will explain how to forecast sales for your small business.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.engagebay.com\/blog\/sales-forecasting-strategies\/\" \/>\n<meta property=\"og:site_name\" content=\"EngageBay - All-in-one marketing, sales, and service\" \/>\n<meta property=\"article:publisher\" content=\"https:\/\/www.facebook.com\/engagebay\" \/>\n<meta property=\"article:published_time\" content=\"2021-07-22T05:09:54+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2025-10-31T14:12:52+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/www.engagebay.com\/blog\/wp-content\/uploads\/2019\/10\/sales-forecasting-small-business.png\" \/>\n\t<meta property=\"og:image:width\" content=\"1000\" \/>\n\t<meta property=\"og:image:height\" content=\"600\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/png\" \/>\n<meta name=\"author\" content=\"Nicole Malczan\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:creator\" content=\"@engagebay\" \/>\n<meta name=\"twitter:site\" content=\"@engagebay\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Nicole Malczan\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"19 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"Article\",\"@id\":\"https:\/\/www.engagebay.com\/blog\/sales-forecasting-strategies\/#article\",\"isPartOf\":{\"@id\":\"https:\/\/www.engagebay.com\/blog\/sales-forecasting-strategies\/\"},\"author\":{\"name\":\"Nicole Malczan\",\"@id\":\"https:\/\/www.engagebay.com\/blog\/#\/schema\/person\/ab4bd7395a29f3686b9782f656820fda\"},\"headline\":\"Sales Forecasting: Comprehensive Guide For Small Business Owners\",\"datePublished\":\"2021-07-22T05:09:54+00:00\",\"dateModified\":\"2025-10-31T14:12:52+00:00\",\"mainEntityOfPage\":{\"@id\":\"https:\/\/www.engagebay.com\/blog\/sales-forecasting-strategies\/\"},\"wordCount\":3894,\"commentCount\":1,\"publisher\":{\"@id\":\"https:\/\/www.engagebay.com\/blog\/#organization\"},\"image\":{\"@id\":\"https:\/\/www.engagebay.com\/blog\/sales-forecasting-strategies\/#primaryimage\"},\"thumbnailUrl\":\"https:\/\/www.engagebay.com\/blog\/wp-content\/uploads\/2019\/10\/sales-forecasting-small-business.png\",\"keywords\":[\"sales forecasting\",\"sales plan\",\"sales projections\"],\"articleSection\":[\"Sales\"],\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"CommentAction\",\"name\":\"Comment\",\"target\":[\"https:\/\/www.engagebay.com\/blog\/sales-forecasting-strategies\/#respond\"]}]},{\"@type\":\"WebPage\",\"@id\":\"https:\/\/www.engagebay.com\/blog\/sales-forecasting-strategies\/\",\"url\":\"https:\/\/www.engagebay.com\/blog\/sales-forecasting-strategies\/\",\"name\":\"Sales Forecasting: Comprehensive Guide for Small Business Owners\",\"isPartOf\":{\"@id\":\"https:\/\/www.engagebay.com\/blog\/#website\"},\"primaryImageOfPage\":{\"@id\":\"https:\/\/www.engagebay.com\/blog\/sales-forecasting-strategies\/#primaryimage\"},\"image\":{\"@id\":\"https:\/\/www.engagebay.com\/blog\/sales-forecasting-strategies\/#primaryimage\"},\"thumbnailUrl\":\"https:\/\/www.engagebay.com\/blog\/wp-content\/uploads\/2019\/10\/sales-forecasting-small-business.png\",\"datePublished\":\"2021-07-22T05:09:54+00:00\",\"dateModified\":\"2025-10-31T14:12:52+00:00\",\"description\":\"Sales forecasting is crucial. 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