Your sales or revenue forecast will be an important and key element for any business plan....

Your sales or revenue forecast will be an important and key element for any business plan. If you were to forecast the sales for Year 1 through Year 3 what would be the variables you would need to consider and where might you go to research and obtain the data on which to base your forecast?

Expert Solution

Answer: Sales and revenue forecasting is based on a number of variables that forms the basis to make such predictions. For 1-3 years forecast which is a short to medium term forecast I will consider the following variables

1. Past sales/revenue figures (if available): These can be obtained from the past company records

2. Projected growth in the industry during this period: This can be obtained from industry reports

3. Goals and objectives of the business plan: From the business plan itself

4. Projected economic growth during this period: Government projections and reports from various financial institutions

5. Consumer sentiment: Consumer sentiment index/industry/economic reports

6. Expected rise/fall in disposable income of the consumers: industry/economic reports

7. Credit policy: Government documents

8. Company’s internal factors like resources, existing customer base and so on: Internal analysis of the company and past document

A sales/revenue forecast is a technical document and the above mentioned variables have to be considered by applying forecasting tools and expertise

keosha answered 1 month ago

Revenue Sources Discussion In running any business, it is important to identify and manage your revenue...

Revenue Sources Discussion In running any business, it is important to identify and manage your revenue sources so you can remain financially viable. In a health care environment, this is particularly important. As you know, there may be many changes to the Affordable Care Act (ACA) on the horizon under the new Administration in Washington, D.C. Research the Affordable Care Act (ACA) and: 1. In your first post: Discuss one thing that you feel should remain the same with the...

An important element in business success is a solid Accounts Receivable management plan. A good plan...

An important element in business success is a solid Accounts Receivable management plan. A good plan will help management not only collect monies owed in a timely manner, but also assist them in making decisions regarding credit sales and what should be the company’s policy on extending credit. Explain the accounting constraint of materiality, and its role in Accounts Receivable. Provide an explanation as to why accountants care how long it takes to collect AR. How does poor AR Management...

What does Business Model: Key Revenue Streams mean when writing a business plan?

Strategic Plan Discussion Budgeting is very important to any business as the budget serves as the...

Strategic Plan Discussion Budgeting is very important to any business as the budget serves as the financial “roadmap” to help guide you towards your goals. Just as it is important for you to adhere to a budget in your household, a business must also develop and adhere to a budget. Budgets are part of the financial plan which, in turn, is part of an organization’s overall strategic plan. 1. In your first post, answer the following questions: -What is the...

Using all the key features of an IT business plan, prepare an enticing business plan for...

Using all the key features of an IT business plan, prepare an enticing business plan for your IT business idea you hope to turn into a successful company in Ghana, the essay should be more than 1500 words.

Critical Sales Forecast Why is the sales forecast so important in short-term financial planning? How does...

Critical Sales Forecast Why is the sales forecast so important in short-term financial planning? How does it affect the key areas in a whole organization? Which area do you think is most affected by the sales forecast? Why?

Describe the process of developing a strategic plan and its core key element for a public...

Describe the process of developing a strategic plan and its core key element for a public health organization.

write an example of the element of the business plan the example should be related to...

write an example of the element of the business plan the example should be related to the companies, Executive summary Company description Market analysis Operations Management Management team Competitive analysis Management and organization product and service Financial data

Why is the sales forecast so important in developing the master budget?

The sales forecast is often the starting point of the budgeting process. Identify and discuss key...

The sales forecast is often the starting point of the budgeting process. Identify and discuss key assumptions that are made in the creation of the sales forecast. How would you defend these assumptions when presenting your budget to the budget committee? Please type out and use a different answer than what's already on the Chegg database please and thank you

Question