Estimating Sales: Trade Publications

Previous

Table Of Contents

Next

Your estimated sales figure is probably the most difficult number that you will have to come up with in planning your new business. There are many variables and assumptions that come into play when estimating sales. Your location, marketing, competition, and business knowledge will have significant influences on your sales volume.

The sources for obtaining a reasonable estimate of future sales will vary by business type and individual. If you have significant experience in the type of business and are familiar with the local economic conditions, your prior knowledge may give you the best estimate. In this case, you will still want to back up your knowledge with outside verification. If you intend to get any outside financing for your business, you will have to justify your sales figures to your lender.

Most libraries have a wide range of information available for specific types of enterprises. The trade publications and trade associations are good sources of overall sales information for your specific industry. These publications will generally break out sales by geographic region and by business type. The publications may also provide key financial ratios that will be useful in your cash flow planning.