ENTREP PART 2

• Revenue - is a result when sales exceed the cost to produce goods or render the services.
• Revenue - is recognized when earned, whether paid in cash or charged to the account of the customer.
• Sales - is used especially when the nature of business is merchandising or retail, while Service Income is used to record revenues earned by rendering services.
• The entrepreneur would want his/her forecasting for his/her small business as credible and as accurate as possible to avoid complications in the future.
• The economic condition of the country -When the economy grows, its growth is experienced by the consumers
• Consumers - are more likely to buy products and services
• The entrepreneur must be able to identify the overall health of the economy in order to make informed estimates.
• A healthy economy makes good business
• The competing businesses or competitors. -Observe how your competitors are doing business. This will also give you a better estimate as to how much market share is available for you to exploit
• Changes happening in the community. -Changes’ happening in the environment such as customer demographic, lifestyle and buying behavior gives the entrepreneur a better perspective about the market.
• 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 - refers to the amount added to the cost to come up with the selling price.
• Service Income - is used to record revenues earned by rendering services.