Easy Sales Forecasting (Google Sheets version)

Introduction

This tutorial will guide you through the process of easy sales forecasting using Google Sheets. By following these steps, you will learn how to create a customized sales forecasting model that incorporates actual sales data, annual growth projections, monthly seasonality, and weekday trends. This method is beneficial for businesses looking to make data-driven decisions and improve their sales strategies.

Step 1: Make Your Own Copy of the Template

• Visit the Google Sheets template provided in the video.
• Go to "File" in the menu and select "Make a copy" to save it to your Google Drive.
• Rename the document to something relevant for easy reference.

Step 2: Overview of the Template

• Familiarize yourself with the spreadsheet layout.
• Understand the different sections, including where you'll input data and how the forecasts will be displayed.
• Take note of any formulas or links between sheets that will be important for later steps.

Step 3: Prepare for the Demo

• Ensure you have your actual sales data ready for input.
• This data should cover a significant time period to create an accurate forecast.
• Check that your data is in a consistent format, with dates and sales figures clearly labeled.

Step 4: Configure Settings

• Navigate to the settings section of the template.
• Input your base year and any relevant parameters for your forecast.
• Adjust the settings according to your business needs, such as defining your sales targets and growth expectations.

Step 5: Enter Daily Sales Actuals

• Go to the section labeled “Daily sales - actuals.”
• Input your actual sales figures for each day in the designated cells.
• Ensure accuracy, as this data will form the baseline for your forecasting model.

Step 6: Model Annual Growth

• Locate the section titled “Model - annual growth.”
• Estimate your expected annual growth rate based on historical data or market research.
• Input this growth rate into the appropriate cell to apply it to your forecasting model.

Step 7: Model Monthly Seasonality

• Find the section for “Model - monthly seasonality.”
• Analyze past sales trends to identify seasonal peaks and troughs.
• Input seasonal adjustments into the sheet to ensure your model reflects true sales potential throughout the year.

Step 8: Model Weekday Trends

• Navigate to the “Model - weekday trends” section.
• Review your sales data to determine if certain days of the week consistently yield higher or lower sales.
• Input any necessary adjustments based on this analysis.

Step 9: Create Daily Forecast

• Move to the “Model - daily forecast” section.
• Using the data and adjustments from previous steps, generate daily sales forecasts.
• Ensure the formulas in the spreadsheet are functioning correctly to reflect your inputs accurately.

Step 10: Monthly Summary

• Finally, review the “Monthly summary” section.
• This area will compile your daily forecasts into monthly totals for easier analysis.
• Use this summary to identify trends and make informed business decisions.

Conclusion

By following these steps, you can create an effective sales forecasting model in Google Sheets. This structured approach allows you to input actual sales data and apply various forecasting techniques such as annual growth, seasonality, and weekday trends. Utilize this model to gain insights into your sales performance and drive strategic planning for your business. For further learning, consider exploring additional features in Google Sheets to enhance your forecasting capabilities.