The process of this type of forecasting is not difficult to understand. Here are the major steps that can be utilized to produce a sound forecast for a business: Collect the data for outlining the total addressable market i.e., the market that is available for sale of the product or service that is being provided and is a concept that is used to generate the potential revenue gained if all of the market shares were swallowed up by the firm.
The next step includes the computation of sales figures and the total expected revenue of the company and how that relates to the total sales of the business in terms of market share. It also looks for trends in this market share and forecasts whether there is potential for an increase or decrease and to what degree.
Lastly, the revenue of the company is generated and may be discounted into current value, or it may even be transmuted into sale volume depending on the business and its goals.