Question

How would a new business get information to accurately forecast its sales?

Answer 1

Answer:

A ). Look at competitors' sales and profitability

Explanation:

A new business is a fresh entrant in the market. It does not have records to use in projecting future sales.  The company will operate in a competitive industry.  To be able to predict its sales, the business will have to rely on data from other firms in the industry.

A study of its competitor's sales and profits will provide the business with a clear picture of what to expect. The new entrant figures should not vary with its competitors with huge differences.

Using guesswork is will probably mislead the directors of the business. Most likely, they will get over-ambitious, which will frustrate them when they begin operations. As they are new, they cannot use the previous year's receipts.