The computer files discussed in this chapter can be used for the introduction of a new product or service or an existing business to help you determine your sales forecasts, market share, and profit and loss.
In our case history file, CSALES.xls, you will see data relative to such factors as what percent of the potential buyers will become aware of what is being sold, future coverage area or distribution goals, sales closure rate, etc. By manipulating this data, you can see what effect each variable can have on the outcomes: sales, market share, profit, etc. And you will get a feel for how the model works.
If you were setting out to design this type of model, you would insert your objectives of the business at the bottom of the model and then add all the intangibles that influence these objectives at the top of the model. You would then add formulas between the intangibles and the objectives relative to how the intangibles influence the objectives.
This has already been done for you in this model. It is ready for you to insert your estimates and see what effect it has on your objectives. You can ask yourself, [What if sales closure rate