Businesses Can Predict with Confidence Using Forecasting Methods

Forecasting methodsForecasting sales is a practice that can be different for each company. Trying to come up with a model that can relate to several businesses may not be the best way to predict a fiscal outcome.

Securing a solid prediction for an upcoming year is one of the best ways for sales management to monitor the performance of their employees. By using past information, tracking the numbers for clients and leads becomes a measurable success or failure for new salespeople.

Companies do not have to be full of individuals that took statistics classes in college in order to provide effective forecasting. Using the data from previous years and adjusting the models over time can be done simply. Along with the compilation of data, using an educated guess to help shape the future forecast is a method used by many professionals in the field, according to Inc.com.

“Most businesses are not necessarily very sophisticated,” Glen Margolis, president and CEO of Steelwedge Software, told the news source. “They don’t have a team of statisticians. It’s someone with other day-to-day activities who also keeps an eye on forecasting.”

Including all elements of a business is vital in the forecasting process, as each moving part may contribute to another area. Leaving out certain aspects may cause for skewed numbers during the prediction phase and will cause parts of the business to feel excluded from the process, which in turn leaves that area less accountable, the news source noted.

While some speak to an easy forecasting system, technology that can help companies accurately predict future business is available. Web-based applications that are run on a cloud-computing model can help make the process easier, according to AllthingsCRM.

Although sales force automation (SFA) technology has been in use for years, the lack of a cloud system to help share and store data over multiple servers has impaired the implementation of the process. Cloud computing can help place the data into a web browser to provide unlimited access to the information, the technology company noted.

Web-based applications that combine the data onto one server utilize the full potential of the cloud system and allow businesses to free up their sales professionals for lead generation and client contact instead of focusing on forecasting future months. These forecasts can also be adjusted easily through base models that are available in the technology.