Sales forecasting is the process of estimating future sales.

Accurate sales forecasts

enable companies to make informed business decisions and predict short-term and
long-term performance. Companies can base their forecasts on past sales data,
industry-wide comparisons, and economic trends.

It is easier for established companies to predict future sales based on years of

past business data. Newly founded companies have to base their forecasts on less-
verified information, such as market research and competitive intelligence to forecast
their future business.

Sales forecasting gives insight into how a company should manage its workforce, cash

flow, and resources. In addition to helping a company allocate its internal resources
effectively, predictive sales data is important for businesses when looking to acquire
investment capital.

Sales forecasting allows companies to:

 Predict achievable sales revenue;
 Efficiently allocate resources;
 Plan for future growth.

https://trackmaven.com/marketing-dictionary/sales-forecasting/

A sales forecast predicts what a salesperson, team, or company will sell weekly,
monthly, quarterly, or annually. Managers use reps' sales forecasts to estimate
business their team will close. Directors use team forecasts to anticipate department
sales. The VP of Sales uses department forecasts to project organization sales.

https://blog.hubspot.com/sales/sales-forecasting

Your sales forecast is the backbone of your business plan. People measure a
business and its growth by sales, and your sales forecast sets the standard for
expenses, profits and growth.

When it comes to forecasting sales, don't fall for the trap that says forecasting
takes training, mathematics or advanced degrees. Forecasting is mainly
educated guessing. So don't expect to get it perfect; just make it reasonable.
There's no business owner who isn't qualified to forecast sales--you don't need a
business degree or accountant's certification. What you need is common sense,
research of the factors, and motivation to make an educated guess.

Your sales forecast in a business plan should show sales by month for the next
12 months--at least--and then by year for the following two to five years. Three
years, total, is generally enough for most business plans.

https://www.entrepreneur.com/article/77674