Your sales projection formula is key to more accurate financial projections and to the success of your business.
Sales projection formulas are always wrong. Here are six ways to improve them.
Sales projections are wrong because…
- Sales projections are not supposed to be right. They need to be relevant.
They’re a snapshot. They are a specific point in time, based on relevant data and criteria and are defensible within limits. They give you an idea of what to expect each week or month or year. Improve your sales projections by making sure you don’t accept the projected sales numbers without question — including your own numbers. The answers you get from salespeople in terms of what they think will close have to be reasonable and with some sort of basis not just hype and hope. [Read more…]