A sales forecast is an estimate of the total number of sales that will close in a given period. Often a forecast is given per month or quarter, and aligns with a company’s financial reporting methods.
Accurate forecasting can be considered a superpower and a sign of a mature organization. It allows a sales team to confidently predict their quarterly outcomes, which in turn drives hiring, budgeting, and resource allocation.
As a sales process becomes more repeatable, it can become easier to predict sales figures. Forecasts are commonly used alongside financial projections to help investors in the private and public markets assess the future value of a business.