Forecasting revenues of the business

• Forecasting

  • tool used in planning that aims to support management of a business owner in its desire to adjust and cope with uncertainties of the future.
  • depends on the data from the past and present and to make meaningful estimates on revenues
• Cost

  • amounts that has to be paid or spent to buy or obtain something
• Sales

  • total number of goods or services a company sells during a specific period
• Revenue

  • when sales exceed the cost to produce goods or render the services
• Factors that serve as basis in forecasting revenues of the business

  1. The economic condition of the country
  2. The competing business or competitors
  3. Changes happening in the community
  4. The internal aspect of the business
• The economic condition of the country (factor)

  • when economy grows, its growth is experienced by the consumers
  • healthy economy makes good business
• Competing businesses or competitors (factor)

  • observe how your competition are doing business
  • know how much your competitors are selling
• Changes happening in the community (factor)

  • changes in the environment may give entrepreneurs better perspective about the market
• Mark up

  • amount added to the cost to come up with the selling price
• Selling Price

  • seller's final price
  • how much the customer pays for the product or service