2.  There are 6000 women in the target group for a hairdresser, each of whom visit the hairdressers 8 times year.  A new hairdresser expects to gain 10% of the market in the first year.  The average price will be £25.  How much revenue would you forecast the will make each month?  How did you work it out?

3. Monthly revenue = £10,000  Target market 6000* 8 visit per year = 48,000  4 other hairdressers  Capture 10 % of market 4,800  Monthly 4,800/12 = 400 customers per month  Average price £25  Monthly revenue 400 * £25 = £10,000

4.  A sale forecast for a business does what it says on the tin. Sales Forecast – a prediction of sales over a period of time

5. Highlight which of the following is a key decision made using a sale forecast and explain why? Employment levels Fixed assets required e.g. machinery Stock levels Promotional mix Amount of money you need to borrow. Yes that’s right – all of them!

6.  Your forecast should be based on market research. If you wish to open a doughnut shop what do you need to know:  The price you are going to charge  Where the shop will be  Type of customer you are targeting  How often your target market buy your goods.  This should help you estimate the number of customers who will buy your product.  You also need to know the number of your competitors. Now read through the following case study and write down how you are going to work out your sales forecast.

7. STEP 1: WORK OUT THE NUMBER OF CUSTOMERS

8. STEP 2: CALCULATE HOW OFTEN THEY WILL VISIT YOUR BUSINESS See the next slide for market research from which % were taken

10. STEP 3: CALCULATE THE SALES

11. Find a similar business and use its sales as your forecast e.g. look at some of the online business plans or interview a business.

12.  Conduct some extra primary research Do a count of the number of customers in a shop. Multiply this by how much your research people said they would spend and then multiply by days, months etc. Study a restaurant – count the tables occupied and then repeat as above.

13.  https://www.thebusinessplanshop.com/b log/en/entry/how_to_forecast_sales https://www.thebusinessplanshop.com/b log/en/entry/how_to_forecast_sales  http://www.startupdonut.co.uk/startup/s ales-and-marketing/q-a-sales- forecasting http://www.startupdonut.co.uk/startup/s ales-and-marketing/q-a-sales- forecasting  http://www.tutor2u.net/business/marketi ng/sales_forecasting.asp http://www.tutor2u.net/business/marketi ng/sales_forecasting.asp

14.  Now calculate and explain a sales forecast for your business. The method that you use will depend on the type of business you are and amount of information you have. There are different ways to do it.  THIS CAN BE A DIFFICULT TASK. HAVE A GO AT IT. IT IS A FORECAST SO IT IS LIKELY TO BE WRONG. YOU WILL GAIN CREDIT FOR SHOWING HOW YOU WORKED IT OUT AND CAN THEN CRITICISE IT IN THE FINAL EVALUATION. YOU WILL GET MARKS FOR EVALUATING  If you are missing any research to help you calculate this go away and add it to what you already have.  Market share figures are often optimistic, so now add another forecast using a smaller market share figure.  Now look back at your SMART AIMS – do you need to change/add aims for sales/ market share.