What is a sales forecast, and how does Opsyte help you manage it?
Creating and using a sales forecast is a huge benefit to your hospitality business - it is the foundation for much of your businesses financial reporting! A sales forecast can help you manage your staff costs, other variable costs, manage your cash flow and set goals. Don’t worry – Opsyte helps you with the basics.
So, what is a sales forecast?
Sales forecasting is the process of estimating future sales. It is typically based on past sales data, but it can also be generated by looking at industry benchmarks and market research.
It’s also important to remember that your forecast is built on assumptions which can be ever changing! Some key areas to consider for hospitality are:
- Market Conditions: A very relevant example in the context of the pandemic! Having a general understanding of the macro effects on your business can help you better predict your sales. What does the broader market look like?
- Seasonality: Another big factor to consider for hospitality. You’re likely to see seasonal peaks and troughs in your footfall which may reflect the weather, public holidays, local events and a range of other seasonal factors.
How does Opsyte help?
Opsyte has a forecasting function which is used in a few different places. It is used to help you keep track of your labour cost in the rota – you will be notified when your wages reach more than a certain % of your forecasted sales. It is also used in your reporting, in your P&L Flash and your Wage Report.
In the absence of data, Opsyte will automatically calculate a forecast based on your previous 12 weeks of sales. This gives you a benchmark to work your forecast from if you do not have one, but to create a more accurate forecast you may wish to adjust this to reflect the factors mentioned above, and other forecast influencing factors such as changes to your products and services and your marketing efforts.
If you wish to find out more about where you can input your forecast on Opsyte, please visit the following link or contact customer support!