Forecasting Sales

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Old September 22nd, 2013, 05:16 PM   #1 (permalink)
Digital Threads Digital Threads is offline
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Default Forecasting Sales

Hello Everyone,

My wife and I are considering starting an embroidery business.

As part of determining whether or not the business is there to support the purchase of an embroidery machine and for our business plan, we have to forecast sales. We are not sure what to expect for sales for a new embroidery business in our area.

We live in what would be considered a rural area, but there are several communities within 35-40 miles of each other with a variety of businesses, organizations, schools, etc. that would buy embroidered items.

There are some established embroidery businesses, but a person I recently spoke with, who was selling primarily embroidered clothing in the area up until recently, thinks there is room for another embroidery business.

What has been your experience with number of items sold per week, per month, per year? I would be doing the sales, and while I do work another job, I would have afternoons, evenings, and weekends to knock on doors, make phone calls, send emails, etc.

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Old September 23rd, 2013, 11:47 AM   #2 (permalink)
Robert Young Robert Young is offline
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Default Re: Forecasting Sales

ouch, not sure this question could be answered since every area is different and each time of year, etc... depends on SO many things..(population, your ability to close a sale, how much time you realistically will put in, etc).. But would it be possible to begin your sales and marketing plan and just sub everything out for the first 3 to 6 months or longer if needed? This would allow you to concentrate on a smaller number of tasks up front to get your feet wet and save your money until you see for yourself the fruits of your efforts? This would also let you know what TYPE of machine you would need... a single head? home embroiderer? something that has a hat attachment? 2 head, or even something larger. Taking the guesswork out so you dont end up with an expensive toy in the back bedroom.

This also gives you a chance to form a relationship with your subcontractors so if you have the option of winning a LARGE order you arent having to say no. So you would need those contacts anyway. And they dont have to be local of course, just eat the shipping until it makes sense to do it inhouse.

hope this helps?
Modern Embroidery Designer
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