Forecasting Business Revenue
Forecasting is predicting the future, as in, the weather forecast says it will rain tomorrow. Forecasting business revenue refers to the process of estimating the level of sales that your company will enjoy over a given period of time. Forecasting business revenue is generally done as part of developing a business plan when a new company starts to determine if the business is viable and what capital is needed to proceed. Established businesses also forecast their business revenue to facilitate business growth and financial control.
Forecasting calls for a combination of statistical analysis together with sound judgment. Some research and a good deal of common sense are in order. Estimating total sales for the market for the coming year may not be an easy task. The overall level of sales in a given marketplace could go up or down for various reasons. Ultimately, after considering all the available data and using your best judgment, you can only make your best guess.