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    WEEK 14 Revenue

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    72.dust
    The document discusses forecasting revenue and growth for businesses. It covers defining revenue and growth, building financial forecasts by considering fixed costs, variable costs and direct labor costs, and provides examples of conservative and aggressive revenue forecasting assumptions.

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    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd

    WEEK 14 Revenue

    Uploaded by

    72.dust
    16 views14 pages
    The document discusses forecasting revenue and growth for businesses. It covers defining revenue and growth, building financial forecasts by considering fixed costs, variable costs and direct labor costs, and provides examples of conservative and aggressive revenue forecasting assumptions.

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    WEEK-14-Revenue

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    The document discusses forecasting revenue and growth for businesses. It covers defining revenue and growth, building financial forecasts by considering fixed costs, variable costs and direct labor costs, and provides examples of conservative and aggressive revenue forecasting assumptions.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    16 views14 pages

    WEEK 14 Revenue

    Uploaded by

    72.dust
    The document discusses forecasting revenue and growth for businesses. It covers defining revenue and growth, building financial forecasts by considering fixed costs, variable costs and direct labor costs, and provides examples of conservative and aggressive revenue forecasting assumptions.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    You are on page 1of 14

    Revenues

    How to Forecast Revenue and Growth


    SLIDESMANIA.COM
    Forecasting
    ● is calculating and Businesses utilize
    forecasting to
    predicting usually
    determine how to
    as a result of study allocate their budgets
    and analysis of or plan for anticipated
    available pertinent expenses for an
    upcoming period of
    data.
    SLIDESMANIA.COM

    time.
    REVENUE
    ●is the total income produced by a given
    source

    ●a property expected to yield large annual


    revenue

    the gross income returned by an investment


    SLIDESMANIA.COM

    ●
    GROWTH
    ● is a stage in the process of growing

    ● it is a result of growth

    ● It is anticipated progressive growth


    especially in capital value and income.
    SLIDESMANIA.COM
    Building Financial Forecasts
    1. Fixed Costs/Overhead
    ● a. Rent
    ● b. Utility bills
    ● c. Phone bills/communication costs
    ● d. Accounting/bookkeeping
    ● e. Legal/insurance/licensing fees
    ● f. Postage
    ● g. Technology
    SLIDESMANIA.COM

    ● h. Advertising & Marketing


    ● i. Salaries
    Building Financial Forecasts

    2. Variable Costs
    ● a. Cost of Goods Sold
    ● b. Materials and supplies
    ● c. Packaging
    SLIDESMANIA.COM
    Building Financial Forecasts

    3. Direct Labor Costs


    ● a. Customer service
    ● b. Direct sales
    ● c. Direct marketing
    SLIDESMANIA.COM
    FORECAST REVENUE
    Conservative revenue might have the following
    assumptions:
    ● 1. Low price point.

    ● 2. Two marketing channels.

    ● 3. No sales staff.

    ● 4. One new product or service introduced


    SLIDESMANIA.COM

    each year for the first three years.


    FORECAST REVENUE
    Conservative revenue might have the following
    assumptions:
    ● 1. Low price point.

    ● 2. Two marketing channels.

    ● 3. No sales staff.

    ● 4. One new product or service introduced


    SLIDESMANIA.COM

    each year for the first three years.


    FORECAST REVENUE
    Aggressive case might have the following assumptions:
    1. Low price point for base product, higher price for
    premium product.
    2. Three to four marketing channels managed by a
    marketing manager.
    3. Two salespeople paid on commission.
    4. One new product or service introduced for each segment
    on the market in years two and three.
    SLIDESMANIA.COM
    Conservative revenue Aggressive case
    FORECAST
    1. Low price point. REVENUE
    1. Low price point for base
    product, higher price for
    2. Two marketing premium product.
    1. Low price point.

    channels. 2. Two marketing channels.


    2. Three to four marketing
    3. No sales staff.
    4. One new product or service introduced each year for the first

    3. No sales staff.
    three years.
    channels managed by a
    4. One new product or marketing manager.
    service introduced each 3. Two salespeople paid on
    commission.
    year for the first three
    4. One new product or service
    years. introduced for each segment
    SLIDESMANIA.COM

    on the market in years two


    and three.
    Key Ratios in Forecasting
    1. Decide on a Timeline
    ● Decide on how far you want to look into the future.

    This will be determined by creating the report.

    2. Forecast Your Expenses


    ● Predicting expenses is perhaps the easiest part of

    revenue forecast with past expense records of an


    SLIDESMANIA.COM

    existing business and researched forecast.


    Two Types of Expenses
    1. Fixed Costs - These are the expenses
    that remain the same every month.

    2. Variable Costs - Those are the expenses


    that change every month, depending on
    your sales volume.
    SLIDESMANIA.COM
    Thank you!
    SLIDESMANIA.COM

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