What are the Sales Forecasting Myths?
Sales forecasting for any business in the UK & Ireland is hard enough to get it right without all the ways we get it wrong. Now more than ever, managing your Sales forecasting is really important for every business and very much misunderstood. Most people fear forecasting. So why do people and businesses hate forecasting? It's mostly because of myths and misunderstandings. Such as, among others, these three:
Sales Forecasting Myth 1: It's About Accurate Forecasting
Not really. What's much more important is structuring a Sales forecasting so we can track results—make it match your accounting input—and then following up. Structure it for tracking, then track it, and then, after review, make the management decisions around the correct information.
The great loss is how many business forecasts never produce the second step. No wonder people disrespect forecasting. Without the following up, there's very little value.
Think of a Sales forecasting as a route on an electronic map, and the process of comparing actual results with the original forecast as the GPS technology that places your exact location onto that map. The map alone isn't nearly as effective as the combination.
Sales Forecasting Myth 2: It's for Experts
Sales forecasting is a matter of good educated guessing in rows and columns on a spreadsheet. Real people, the ones who run the business, think about what they can realistically expect. Technical analysis isn't what makes forecasting work. Common sense and frequent review make forecasting work.
Sales Forecasting Myth 3: You Can Manage Without it
Managing a company without sales forecasting—the forecast, the actual results, and the management that follows—is about as smart as driving a car without a steering wheel, or maybe I should say with your windshield covered in black paint.
Of course there are always exceptions, but most of businesses right now are dealing with sales less than planned. And planned sales usually drive planned spending. So this is not a good thing.
That's where the management comes in. MXI is leading provider of software and services that enable business in the UK & Ireland, to achieve continuous business process improvements. MXI is committed to delivering ongoing customer value; a philosophy that extends throughout our entire company. From product development and support to professional services and account management, MXI continues to refine our customers’ expectations of what a software company can do for them. To gain a better understanding of the MXI customer experience, examine our approach and get ready to raise your own expectations. Download our free whitepaper on Fundamental Issues in Business Forecasting to understand more about your business forecasting requirements.