Definition

Predicting future sales using past data and current trends. A good forecast helps plan for inventory, staff, and other needs.

What to consider

  • Base forecasts on reliable data.
  • Adjust for seasonal trends.
  • Set realistic and conservative estimates.

Real world scenarios

  • A fashion boutique in New York uses last year’s seasonal data to predict next quarter’s sales.
  • An online subscription service estimates new sign-ups based on recent campaign responses.
  • A local gym projects membership growth from a planned promotional event.

Related terms

Entrepreneurial Finances