LESSON 27: How to determine your sales – the foundation Articles

LESSON 27: How to determine your sales – the foundation of your plan

 It will usually be the case that you start your plan by entering your sales. That is not always so though. There will be times when it makes sense to put in costs first, and then work back to sales from there. However, since it is most usual to start with sales, and since this […]

27.1 Experimenting

 Firstly you can use plans to experiment. You can get answers to questions like “If my business was like this, if my sales and costs were like that, then what results would I achieve?”. Questions like this help you decide what type and scale of business you want. They help tell you in any given […]

27.2 Budgets in established businesses

 We also considered how you move from experimenting – getting a handle on the overall scale and scope of your business – to setting budgets. If you have been in business for a while you will have a track record, you will have a reasonable idea of the sort of sales you can expect to […]

27.3 You are in control, so you can decide what your sales will be

 What is overwhelmingly useful though – and which bizarrely is so very often not even brought into conscious play – is your ability to control, or at least significantly influence your sales. The whole point of planning and budgeting is that you are in control. You are setting targets. You are actively deciding upon what […]

27.4 Make multiple predictions

 Since you can’t know the future, don’t rely too much on a single expected or hoped-for outcome. Consider several scenarios and look at the results. At least make best, most-likely, and worst versions of your plan. You should only commit to a course of action if you can see that even in your worst case […]

27.5 No idea what your sales might be? Start-Up?

 If you genuinely do not know what your sales are likely to be, if you really have no idea, why is that? That is most likely the case if you are a start-up. If you are in that position do not attempt to launch your business on a grand scale. Play around with figures in […]

27.6 Other situations

There are other situations when you will use your planning model in other ways, and we will come on to those. As we come to each we will consider how you determine the sales to use in each situation. The most important of these other uses of your planning model is to control cash, by […]

27.7 Recording sales in your model

 So, now that we know where the sales figures come from, how do you actually record those sales in your model? The exact procedure of course depends upon the precise model you are using, but the gist of the process is quite simple, and is as follows. Step one. Decide upon your sales categories. In […]