Ecommerce businesses need to know their working capital and by working capitals, I mean how much money to reasonably spend on your business over a period of time, such as a week, month or usually a quarter. Ideally, you want to know how much to reasonably spend as you want to budget your working capital effectively to maximize the growth of your business. Looking at the last quarter of this graph, based on the previous year’s sales, you will be able to see how much money you will make over a given future timespan. You will also be able to gauge how much money to spend to buy more inventory.
As ecommerce sellers know, you want to earn 10%, 20% or however many percentages off the money you spend on the product. How AiHello helps with this overarching issue is that you want to know how much money to invest in your inventory over a period of time so you can make the purchase order immediately. How we can provide an answer to this is looking at the total revenue forecast graph where you can select the date range for when you are looking to estimate your working capital and gauge how much money you should invest in your inventory. So for this business here, I want to forecast the sales from October 1st 2019 to december 31st 2019 of this year.
Now you can see how the sales are projected, you determine how much working capital to spend for this time period. This feature will provide you with all the required information to reduce any unnecessary costs and help you create a roadmap of the sales direction of your business whether that’s in the short term or long term. With the total revenue forecast, you will see all of your previous sales aggregated in a graph format for you to see the trends making it easier to understand and plan for the future of your inventory and in turn, for your business.
If you would like to get started on Estimation of Working Capital click here for a free 14 days trial.
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