Back to Glossary

Sales Forecast

A sales forecast predicts how many units the business will actually sell, considering stock availability, incoming replenishments, marketplace constraints, and demand.

Why It Matters

•Connects inventory availability with expected sales.
•Provides a realistic basis for purchase planning, preventing excessive or insufficient ordering.
•Determines expected revenue and supports operational planning.

Connection to Capital

Sales forecasts define when cash will return to the business and underpin cash flow planning.

Related Terms

If a term is missing, you'd like it explained, or you have suggestions for improvement — we'd love to hear from you. Contact Us →