Sales forecasting is an important step when you are starting a business. It is a prediction of future sales of the business. As I am planning to start an authentic Gujarati Restaurant, I have to plan according to it.

I am calculating my possible sales for the day below.

If I have 15 tables in my restaurant which has a capacity of four people, and if the average dish price is $15. If there is a weekend the counting will be like this if the table turns 3 times per night.

15 Tables * 4 customers per table *$15 average dish prize * 3 times = $2700

This could be the sales forecast for the busy weekend evening. It can change too.

From 1^st year to 3^rd year, the sales can not be same as there are different certain factors that can affect the sale forecast. The calculations I showed were for the weekend evening. I must calculate an estimation of weekdays, quiet evenings, and many more. But I can predict the forecast like this. The most important thing is to match your actual sales with the estimated sales and find out the difference between them.

Sales forecast planning also includes different types of inventories I need for the business and how much should I stock up on it. It’s all depends on the sales my business does. Also, there can be competitors as well from year 1^st to year 3^rd, it is such a long time.

There are many variables I should consider before planning the sales forecast. Before planning sales forecasting, I must check the economic status of the same businesses as me which also includes their past conditions and what economic factors affect the business sales.

Also, one more factor which can affect the sales forecast is the global situation. Things happening worldwide can also affect any kind of business. Also, political factors can affect too, or some political rules that can affect sales forecast. These all things should be considered when planning sales forecasting. Also, the market demand is an important factor too. One more thing I am adding to this is competition. One should consider competition as a significant variable when planning Sales Forecasting.

There can be so many challenges that occur throughout the planning. The biggest challenge that may occur is to get started. It can be challenging sometimes, as I mentioned that my plan is to start an authentic Gujarati restaurant, but it can be challenging sometimes to plan where to start and what to do first. And initial steps in business are a significant part.

•           Another problem that can occur during planning is the financial part. It is hard to manage cash flow and accounts when you are starting a brand-new business. For me, it can be hard to manage my financial accounts and project figures because I have no idea how it works. For that, I have to follow a similar business and take an idea from it.

•           Identifying the target market can be challenging too when starting a new business. Studying about the target market and reaching the customers is an important part of my want to be successful in my business. But it can be hard sometimes to figure out the accurate target market. For my business right now, I am thinking that I will be starting my business near college or university where Indian students are studying but it can possible that my estimate can go wrong too. So, it is hard to identify the target market throughout the planning.

•           Also, the biggest challenge can be keeping the business idea simple, short, and yet effective.

•           The business plan has to be interesting and easy to understand. It can be a big challenge for me if it is hard to explain my business idea to someone who is willing to invest in my business or to my partners.

•           I must develop a vision and mission for my business. It should be realistic and achievable. I must make objective and strategic goals for my business.

•           I must make a Business plan for my restaurant and it can be a big challenge for me. For that, I must make a business plan and have to make sure everything is being done according to the plan.

The growth potential for my business will be to make good profits in business and will try to get success. I will be trying to expand my business in other cities as well after getting success in Windsor. I will try to provide good services to customers so I can gain trust from the customers and can get more profit. Also, I will maintain good customer relations. If they will like my services, they will tell others about my restaurant and it will be indirect marketing for my business. Also, the workers I will hire for my restaurant will be skillful and experts. For my restaurant, I will hire someone from Gujarat who can make authentic Gujarati dishes and can provide the exact same quality and delicacy as Gujarat. That way I will get success in my business.

Are these considerations feasible? Would you change or add any considerations?