Join Rudolph Rosenberg for an in-depth discussion in this video Adding back exceptional elements using pipeline information, part of Making Business Projections.
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At the beginning of this chapter…we split our past PNLs into a day-to-day PNL…and an exceptional elements PNL,…but our forecast cannot simply exclude exceptional elements…just because they are hard to predict.…We took a stab at the day-to-day forecast.…Now let's see how we can reincorporate…the exceptional elements.…Because those elements are highly unpredictable,…the only thing we can really do…is to take into consideration anything that we know…has some level of likelihood…of happening within the year.…
Many companies maintain a document…that lists all the opportunities…that the sales staff is working on.…This is called a sales pipeline.…Often this is nothing more than the list of rows…in an Excel spreadsheet…with a sales opportunity on each of them.…Pipeline management is a much larger topic…so for the rest of this video,…we'll just be focusing…on using the pipeline as a resource.…Those sales opportunities could be big or small…and some of them might be over the threshold…you have earlier defined as exceptional.…
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- Forecasting vs. planning
- Dealing with exceptional elements
- Projecting revenue
- Adjusting for changes and seasonality
- Creating product-level projections
- Estimating costs and operating expenses
- Projecting gross margin
- Setting up targets and goals
- Developing worst-case scenarios<br><br>
- The PMI Registered Education Provider logo is a registered mark of the Project Management Institute, Inc.