Realistic sales projections can mean the difference between your small business loan request being approved or declined.
Lenders generally want to see sales projections for at least three years, and they expect your future sales forecast to come from research, not guesswork.
The market research experts at the Arkansas Small Business and Technology Development Center have access to numerous industry-leading data sources that aid in developing sales projections.
Some are highlighted below.
Consumer Spending
Esri Business Analyst offers an extensive range of consumer spending data, including not only current-year estimates but also five-year projections.
The data can be targeted to an area around your current or proposed location, based on mileage or drive time. Clothing, food, personal care, and entertainment are just a few of the product/service categories for which detailed spending data are available.
In addition to total spending and average household spending, index values identify concentrations of purchase behavior in a specific geographic area.
Business Analyst Sample Report – Entertainment Expenditures
Sales Potential
The SWOT-XPRESS report from BizMiner features an Opportunity Index that quantifies retail sales potential for a particular type of business.
Often available at the local or metro level, these spending estimates can be used to develop realistic sales projections. While not quite as targeted, county-level data can still be helpful in forecasting revenue.
Industry Trends
Additionally, industry reports from IBISWorld and First Research provide useful statistics that can assist in making realistic sales projections.
These specialized reports are updated several times a year by analysts who follow the industry closely. They include projected revenue growth for the industry over the next five years – valuable in helping substantiate sales projections that encourage lenders to recommend approval of a business owner’s loan request.
The Bottom Line
With data compiled and interpreted by ASBTDC’s market research experts and experienced business consultants, you are better equipped to accurately forecast sales. In turn, realistic sales projections increase the likelihood of obtaining a loan or line of credit.
Available to clients at no cost, ASBTDC market research can help Arkansas entrepreneurs secure financing to start or grow a small business.