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Sales forecast

Predicting what will close and when. The number the whole business plans on.

Please note: This page explains what a term means. It is general information, not legal, financial, tax or investment advice, and it does not know anything about your business. Before you sign, file or commit to anything, check it with an accountant, a solicitor, or the official guidance we link to.

What it means

A sales forecast estimates revenue by period, usually from the pipeline weighted by stage or by judgement.

Why it matters

Everything downstream depends on it — hiring, stock, cash. A forecast that is consistently optimistic causes the business to spend money it does not have.

What it looks like in practice

Track forecast accuracy over time. A forecast that is 40% optimistic every quarter is useful once you know that; one that is unpredictable is not.\n\nSeparate committed from probable from possible, and report all three.

What to watch out for

Weighted pipeline treated as cash. A £100,000 opportunity at 50% does not deliver £50,000; it delivers £100,000 or nothing.

Where to get proper advice

Your own pipeline data and your own customers, asked directly. Most of this is not answerable from outside the business.

Where to read more

Last reviewed 2026-08-28 by Fiducia Together · Next review due 2027-08-28

Please note: This page explains what a term means. It is general information, not legal, financial, tax or investment advice, and it does not know anything about your business. Before you sign, file or commit to anything, check it with an accountant, a solicitor, or the official guidance we link to.

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