How To Forecast Health And Fitness Club Business Sales
Forecasting prospective sales in your Health and Fitness Club business is a critical component of setting up and running a business; it's a very important component of your Health and Fitness Club business plan. Your Health and Fitness Club business forecast will clearly not be precise but you should be capable to make realistic, evidence-based projections in order to map your Health and Fitness Club business strategy.
Your sales forecast is the financial projection of the quantity of revenue your Health and Fitness Club business will create from the sales of its products or services. Your sales forecast can stand alone, but it will be closely connected to your Health and Fitness Club business plan. It is an essential and fundamental piece of the planning method and it will be a foremost part of your profit and loss account and cash flow forecast.
So why do you need to forecast sales?
A sales forecast is necessary in order to
1. Predict your cash flow - your forecast might predict slow times of business where you may need a cash injection to pay for products or merely to pay the staff for example.
2. Manage Cash flow - central to the success of your business, it is important that you comprehend how sales forecasting contributes to the calculation of the cash flow forecast.
3. Plan future resource requirements - for example, the amount of workers needed to manage your orders and provide a certain level of service.
4. Plan marketing activities - and the consequent fiscal strategies arising from these.
Whatever the situation, it is critical that you investigate your estimated sales frequently and realistically, and take proper action to re-examine your strategy. Your sales forecast is the standard next to which you should repeatedly quantify what actually happens in your business in terms of sales and the important thing is to be aware of the variances and why they appear, and to incorporate what you have learned into potential forecasts.
So what do you need to consider?
Your sales forecast should show sales by month for at least the next 12 months, and then by year for the following two years. Three years, in total, is generally enough for most business plans.
Things to think about
1. Is there an well-known market for your product or service?
2. What is the magnitude of the market?
3. Is this an escalating/contracting market and if so; by what percentage?
4. What are the major considerations for this market?
5. What might influence it in future?
6. How do recurrent factors influence purchases of your product or service?
7. Are there trends in your business?
Do you know who your customers are?
1. How many customers will in point of fact buy your product or service?
2. Why will they stop trading from someone else to buy from you?
3. How much will you charge?
4. Do you have the resources to offer the quantity of products and services?
5. How many other businesses like yours are out there?
6. Your business will not be exclusive; what happens when fresh competitors enter the market once you have done the footing to raise market awareness?
The entire globe is your marketplace with the invention of the internet - but what products/services can you supply? How can you differentiate your business from your competitors' businesses? Just how adaptable with regard to pricing and the scope of products or services offered can you be?
Preparing your Health and Fitness Club business forecast
All Health and Fitness Club businesses need to base their forecasts on certain assumptions regarding potential changes that may take place in the future. These can be quantified and could include:
1. An expectation of market increase/decline by a certain percentage, for example 10%.
2. Planned expansion in the number of staff to generate an expected 20% increase in production.
3. Better location - more customers - 30% increase in sales.
Preparing your forecast
If you trade more than one product or service, you should prepare a separate forecast for each product in your collection,and forecast:
1. By volume
2. By value
3. By a combination of both value and volume.
So what are the pitfalls when forecasting sales?
1. Make sure your forecast is based on realistic, verifiable and unbiased information.
2. Do not be tempted to overlook your investigation if it showed negative results.
3. Don't make projections only on historical results. Keep looking at what else might have an effect on your sales in the future and fine-tune your forecast in view of that.
4. What is the maximum amount of products you can produce in a set time?. Can you produce the amount of sales being forecast with the personnel, equipment and monetary resources available to you?
5. Does the pricing policy you have used in working out your sales forecast relate to what is really achievable?, or conversely, have the prices been set too low down or too high so that either way your forecast is potentially unrealistic?
6. If you have just started up in business, your business may take longer than you believe to get recognized, and have you set accordingly realistic sales goals?
7. Once preliminary sales have dropped off after your company launch, have you allowed for the increased marketing costs your business might incur?
8. When you make clear your sales forecasts to prospective investors - are they believable?
Forecasting prospective sales in your Health and Fitness Club business is a critical component of setting up and running a business; it's a very important component of your Health and Fitness Club business plan. Your Health and Fitness Club business forecast will clearly not be precise but you should be capable to make realistic, evidence-based projections in order to map your Health and Fitness Club business strategy.
Your sales forecast is the financial projection of the quantity of revenue your Health and Fitness Club business will create from the sales of its products or services. Your sales forecast can stand alone, but it will be closely connected to your Health and Fitness Club business plan. It is an essential and fundamental piece of the planning method and it will be a foremost part of your profit and loss account and cash flow forecast.
So why do you need to forecast sales?
A sales forecast is necessary in order to
1. Predict your cash flow - your forecast might predict slow times of business where you may need a cash injection to pay for products or merely to pay the staff for example.
2. Manage Cash flow - central to the success of your business, it is important that you comprehend how sales forecasting contributes to the calculation of the cash flow forecast.
3. Plan future resource requirements - for example, the amount of workers needed to manage your orders and provide a certain level of service.
4. Plan marketing activities - and the consequent fiscal strategies arising from these.
Whatever the situation, it is critical that you investigate your estimated sales frequently and realistically, and take proper action to re-examine your strategy. Your sales forecast is the standard next to which you should repeatedly quantify what actually happens in your business in terms of sales and the important thing is to be aware of the variances and why they appear, and to incorporate what you have learned into potential forecasts.
So what do you need to consider?
Your sales forecast should show sales by month for at least the next 12 months, and then by year for the following two years. Three years, in total, is generally enough for most business plans.
Things to think about
1. Is there an well-known market for your product or service?
2. What is the magnitude of the market?
3. Is this an escalating/contracting market and if so; by what percentage?
4. What are the major considerations for this market?
5. What might influence it in future?
6. How do recurrent factors influence purchases of your product or service?
7. Are there trends in your business?
Do you know who your customers are?
1. How many customers will in point of fact buy your product or service?
2. Why will they stop trading from someone else to buy from you?
3. How much will you charge?
4. Do you have the resources to offer the quantity of products and services?
5. How many other businesses like yours are out there?
6. Your business will not be exclusive; what happens when fresh competitors enter the market once you have done the footing to raise market awareness?
The entire globe is your marketplace with the invention of the internet - but what products/services can you supply? How can you differentiate your business from your competitors' businesses? Just how adaptable with regard to pricing and the scope of products or services offered can you be?
Preparing your Health and Fitness Club business forecast
All Health and Fitness Club businesses need to base their forecasts on certain assumptions regarding potential changes that may take place in the future. These can be quantified and could include:
1. An expectation of market increase/decline by a certain percentage, for example 10%.
2. Planned expansion in the number of staff to generate an expected 20% increase in production.
3. Better location - more customers - 30% increase in sales.
Preparing your forecast
If you trade more than one product or service, you should prepare a separate forecast for each product in your collection,and forecast:
1. By volume
2. By value
3. By a combination of both value and volume.
So what are the pitfalls when forecasting sales?
1. Make sure your forecast is based on realistic, verifiable and unbiased information.
2. Do not be tempted to overlook your investigation if it showed negative results.
3. Don't make projections only on historical results. Keep looking at what else might have an effect on your sales in the future and fine-tune your forecast in view of that.
4. What is the maximum amount of products you can produce in a set time?. Can you produce the amount of sales being forecast with the personnel, equipment and monetary resources available to you?
5. Does the pricing policy you have used in working out your sales forecast relate to what is really achievable?, or conversely, have the prices been set too low down or too high so that either way your forecast is potentially unrealistic?
6. If you have just started up in business, your business may take longer than you believe to get recognized, and have you set accordingly realistic sales goals?
7. Once preliminary sales have dropped off after your company launch, have you allowed for the increased marketing costs your business might incur?
8. When you make clear your sales forecasts to prospective investors - are they believable?
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