Step 7: Forecast a Different Sales Scenario

Unless your business operates on a subscription based model or you have a high proportion of retained revenue, the chances are your sales forecast will be fairly unpredictable.

To help you plan, we recommend you create a separate, pessimistic forecast so that you can prepare for a worst case scenario.

This Task Should Take No Longer Than 6 Minutes to Complete

Pessimistic Sales
  • Login to your account
  • Click on “Scenarios” (on the left, just above your cash table and below your graph)
  • Select “New Scenario”
  • Select “Layered Scenario”
  • Name your scenario “Pessimistic Sales”
  • Click “Create”

You have now created a copy of your original forecast and can change the numbers without affecting the original.

  • Now click “Quick Budget Edit”
  • Navigate to your sales row
  • Highlight the cell for the current month
  • Enter a figure that is 20% lower than the current number
  • Place your mouse to the right of the cell until a blue arrow appears
  • Click the blue arrow

You will now see your pessimistic sales prediction copied into all future months.

The change you have made will be highlighted in your cash table as a different colour from your original forecast.

And when you look at your graph you will see two lines, one representing your original forecast and the other showing how your cash flow will be impacted if you suffered a 20% dip in sales.

 

Next Up – Step 8: Project a Late Payment >>

Ewan McCowen

I'm a marketing professional and Babson alum who loves all things business. When not in the office you might find me somewhere in the Scottish Highlands, fishing or wild camping.