How could you predict future sales/turnover?

I have created a spreadsheet that shows the turnover and sales for the years, 1 2 and 3. How could I predict a value for year 4 based on the past years.

Many Thanks
In excel

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5 Responses to “How could you predict future sales/turnover?”

  1. Onceuponatime says:

    Don’t you have you crystal ball with you.?
    Very tricky, and would depend a lot on what your line of business is.
    You’ll need to use your common sense,but having only the little information you provide,start by looking at years 1,2 and 3 and see if that throws up any clues.For instance if sales for year 2 were 5% up on year 1,and sales for year 3 were 7% up on year 2 you’ll need to decide if business is going to be better,worse or the same before doing projection for year 4.
    As I say very tricky in these times.There are a lot of variables you need to take into account.
    I’m glad I’m not in your shoes,but if you’re not too sure about something I would be inclinded to err a little on the optimistic side rather than the pessimistic side.But then that’s your job to decide.Good luck.

  2. GhostB says:

    you have to little data for an accurate prediction. But if u really want to predict something I’d take into consideration both the average for the 3 years as well as the trend for the 3 years(if there is a visible one) that could give you a very very rough idea of what Might happen…

  3. Charlie74 says:

    Sorry… this really isn’t a computer question… it’s more of a business / economics question. If you have a formula you are using, we can show you how to put it in to Excel.

    But I’m not an economics major, so I think we need more info from you. Or you might want to ask in an economics area where people in the field can help you.

  4. saajan_1982 says:

    the best way to do this is.. buy a delorean.. get dr emmet to put the flusk comoasidor which generates 1.21 gigawats of electric and when it hits to 88mph.. you can go in to the future.. but make sure you dont intercact with anyone or talk to anyone… theres a guy called griff when he says are you in or are you out.. say you are out and thats it…
    good luck with ur future prediction !!!

  5. aresee says:

    You use either a what if scenario or goal seek both through Tools, if you are pre 2007, and just follow the steps. However, if you want to increase turnover by a certain percentage you can put that in a cell and see what effect it has on your figures because if set up properly with correct formulae, the figures will change, you can then copy and paste special as values somewhere else, so those forecasting values remain when you change the turnover figure back to normal. You have to decide also, if you know you want to increase turnover by say 10% do you do it by increasing prices, increasing sales, or decreasing overheads.

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