The free sales forecast template is built using google sheets and focuses on using the sales pipeline to help leaders build a sales forecast. With an accurate sales forecast, leaders have time to make changes to their sales model to have a higher chance of hitting goals. We have published a blog post on the pipeline forecast methodology so we won’t go into the methodology used in the forecast template but will provide instructions for using the template. The forecast can be broken out into 3 parts. The first is getting your pipeline data into the forecast. The second is calculating your sales cycles and close rates. The third is reviewing the forecast on the manager tab.
- Add in the current opportunity pipeline from your CRM and make sure to include the pipeline stages. If you don’t have a CRM then just go and input this information manually on the Pipeline Data tab.
- Add in the close rate and sales cycle data into the Stage Data tab. Close rates are the number of deals won divided by (the number of deals won plus the number of deals lost) over the passed x timeframe. We like to look at two sales cycles, so 12 months. Sales cycles are how long it takes to close out a deal, either won or lost. For best results break out the sales cycles and close rates by sales teams.
- Review forecast on the Manager tab. Update the manager name to the manager you would like to review.
- Update the date in cell C3 if not correct. Make sure the date is the end of the month. i.e. 7/30/2019.
- In the pivot table filter down to just the manager, you would like to be reviewing.
- Copy out the manager tab by right-clicking on the tab and clicking copy for as many other managers as you have. Update name in cell B1 and the pivot table.
The manager tab is broken up into two sections. The first section is a summary view of the total forecast with won deals needing to be added in manually.
The second section is a pivot table that pulls from the Pipeline Data Tab to provide detail into what stage deals are in. Here is where the forecast pulls in the close rates and sales cycles.
Please reach out to us with any questions. With over 30 years of combined forecasting expertise, we can help with any forecasting problem. Check out our new sales forecasting platform powered by AI, TwelveZeros if you are looking to take your forecast to the next level.