LESSON 2

• Projected revenues


  This part allows the entrepreneur to make decisions based on financial assumptions without even having started the business
• Sale of products


  Generates revenues
• Actual time


  Actual outcome/result of time
• For the entrepreneur, after realizing the potential for profit of his/her business concept, the next step is to estimate how much the revenue is on a daily, monthly and annual basis.
• Revenue


  Total amount of money earned from sales before any expenses are deducted, recognized when earned, whether paid in cash or charged to the account of the customer
• Sales


  Used especially when the nature of business is merchandising or retailing
• Service revenue


  Used to record revenues earned by rendering services
• Various factors to consider in forecasting revenues

  • The economic condition of the country
  • The competing businesses or competitors
  • Changes happening in the community
  • The internal aspect of the business
• the Economic condition of the country


  When the economy grows, its growth is experienced by the consumers. A healthy economy makes good business
• the Competing businesses or competitors


  Observe how your competitors are doing business.
• Changes happening in the community


  Changes happening in the environment such as customer demographic, lifestyle and buying behavior give the entrepreneur a better perspective about the market. Entrepreneurs should always be keen in adapting to these changes in order to sustain the business. Being able to anticipate these changes allows the entrepreneur to maximize sales potential
• the Internal aspect of the business


  Another factor that affects forecasting revenues in the business itself. Plant capacity often plays a very important role in forecasting.
• Mark-up


  Amount added to the cost to come up with the selling price
• Benchmark 


  since you share the same market with them, information about the number of products sold daily or the number of items they are carrying will give you an idea as to how much your competitors are selling
• the number of products manufactured and made depends on the capacity of the plant, availability of raw materials and labour and also the number of salespersons determine the amount of revenues earned by an entrepreneur.