Forecasting sales in your business
The value of your business is influenced by many things, but one of the most obvious measurements is turnover. This year’s sales figures are important – but so too is what you expect to happen in the next 12 months, as this is one of the key indicators of the growth potential of your business.
Predicting your business’s turnover
It’s no coincidence that the very first question of the Value Builder tool that I work through with business owners as an ActionCOACH business coach is:
Over the next 12 months, do you expect your revenue (ie sales/turnover) to:
- Decrease
- Remain at its current level
- Increase by up to 10%
- Increase between 11 and 20%
- Increase by 21-30%
- Increase by more than 30%
- Not sure
It’s probably no surprise that the highest scoring answer is ‘Increase by more than 30%’. The value of your business is what someone else is willing to pay for it, and potential buyers will look for evidence that your business has potential to perform even better in the future.
Of course, large potential for future growth could be a sign that your company is currently underperforming, and maybe something you want to address so you can reap the benefits of higher turnover – and hopefully associated higher profit – before you get to the point of selling your business. However, having opportunities for rapid future growth is a nice problem to have and one that potential buyers will welcome – and be prepared to put a price on.
Tackling falling turnover or slowing growth
A much bigger problem is if you don’t expect significant continued growth in the future. The most difficult situation likely to impede growth is a declining or saturated market, but even in such situations it doesn’t mean it’s time to throw in the towel. Strategies to consider might include:
Diversifying
Moving into a new product line or encouraging consumers to use your product in a new way. This is a strategy that has been used successfully by household names, including:
- IBM – which saved itself by moving into services
- Disney – which supplements its film revenue with theme parks, cruise ships and merchandise
- Apple – which successfully expanded from just computers into phones, mp3-players and now online music
Establishing a monopoly on the market
Until a product becomes completely obsolete, there is still demand for it, even if it is falling. Take the example of carbon paper: previously a mainstay of every office in the world, it is now only used for a tiny number of applications – but it is still used. Which is why there is still a manufacturer of carbon paper in the UK; Yorkhaven enjoys a position as the country’s only supplier of carbon paper.
Most business owners want to be facing the prospect of rapid future growth, but even if that’s not the situation you’re in, there are strategies you can employ to ensure your company’s continued future success, and so ensure that when you want to sell it, you attract the best possible price.
The value of Value Builder
Value Builder looks to inform business owners about areas where they can develop strategies to maximise the attractiveness of their business to prospective buyers. These are based on good business sense; strategies that increase the value of your business to a third party are also strategies that make your business stronger and more profitable. This makes the insights of value to all business owners, whether you are planning on selling your business or intend to stay in it for some time to come.
Value Builder exclusive offer
Value Builder is an extraordinarily powerful tool to give business owners the insights they need to meet their business and personal goals, so I am personally committed to making it available to entrepreneurs in Kent, Sussex and Surrey, in the area indicated in the map.
Value Builder normally costs business owners £500. However, I am delighted to offer it to selected businesses free of charge – and I am also pleased to offer the follow up 90-minute 121 consultation to go through your results at my expense.
Why? Well, I want businesses to have the very best chance to grow and develop, delivering the results business owners and their families deserve.
Secondly, I want to see businesses thrive and recruit additional team members to further grow the business and help to boost the local economy.
The full list of towns where I can provide this service is below, but if you don’t see your location, give me a call or drop me an email I will let you know if I can help you. If I can’t, I’ll put you in touch with one of my colleagues who helps businesses in your area.
To apply for your FREE Value Builder report and business strategy review
Call 01732 453 464
Or email julianweekes@actioncoach.com
I help business owners in the following towns:
Brighton & Hove |
Hailsham |
Lingfield |
Seaford |
Bromley |
Hastings |
Maidstone |
Sevenoaks |
Cranbrook |
Haywards Heath |
Newhaven |
Sittingbourne |
Crawley |
Heathfield |
Orpington |
Tenterden |
Crowborough |
Hildenborough |
Oxted |
Tonbridge |
Dorking |
Horam |
Paddock Wood |
Tunbridge Wells |
Eastbourne |
Horley |
Redhill |
Uckfield |
East Grinstead |
Horsham |
Robertsbridge |
Wadhurst |
Edenbridge |
Kings Hill |
Rotherfield |
Worthing |
Goudhurst |
Lewes |
Rye |
Don’t see your location in the list? Drop me a line and I’ll let you know if I can help you – or put you in touch with one who my colleagues who works with business owners in your area.
My clients benefit from supporting material and coaching in the following business areas:
Sales & marketing |
Lead generation |
Sales process |
Business planning |
Time management |
Finance, understanding the numbers |
USP & POD (Unique Selling Point and Points Of Difference) |
Systems |
Team / Team dynamics |
Recruitment / DISC / personality profiling |
Leadership |
Business growth |
Strategies for profit |
Succession planning |
Exit strategies |
Looking for support in one of these key business areas?
Call 01732 453 464
Or email julianweekes@actioncoach.com
