This is your estimated monthly sales volume assuming no significant promotional programs or external market events that could affect sales.
Use your most recent records of past sales to project the baseline.
With at least two years of records, you might start seeing sales patterns that are consistent from year to year, reflecting the normal demand and seasonality of sales. There might be exceptions due to:
Market events
Competition
Marketing and sales campaign
Remove these exceptions from most recent sales figures to get the baseline
ESTIMATE LOSS/GAIN FROM MARKET TRENDS AND COMPETITOR ACTIVITIES:
Make assumptions about:
Market trends and events
Use your knowledge of the market and competitors to project:
Economic growth
Lifestyle changes
Estimate an average market growth rate
Anticipate any big market events and the resulting impact on sales
Forecast competitor’s activities and its impact on sales
ESTIMATE INCREMENTAL SALES FROM MARKETING/SALES ACTIVITIES:
Forecast marketing campaign and its impact on sales (possibly over many months):
New prospects
New leads
New customers
Order size
Repeat purchases
Anticipate cannibalization or impact of bulk customer purchases
CALCULATE REVENUE SALES FORECAST
Based on volume forecast, calculate your monthly revenue forecast by multiplying your unit price by the volume sales per month