Question

Why do you most think most long-term financial planning begins with sales forecasts? Why are future sales the key input?

type please

Answer 1

The reason is that, ultimately, sales are the driving force behind a business. A firm's assets, employees, and, in fact, just about every aspect of its operations and financing exist to directly or indirectly support sales. Put differently, a firms future need for things like capital assets, employees, inventory, and financing are determined by its future sales level.

Its the heart and soul of any business, without sales you cannot support any operations whatsoever.