Out of all the elements that we will be learning…to project, revenue is probably the most complex.…Not because of the financial methodolody to be used,…and not because of the different types of elements…that make it up.…Revenue is the most complex P&L element to project…because it is the one you have the least control over.…For gross margin or operating expenses,…you have quite a say.…But for revenue, the only thing you have control over…is the resources you will be putting in place…to generate it.…
Then, it is going to be up to those resources…and to your customers to decide how successful…you're going to be.…Because everything is not up to you when…it comes to revenue, we can be tempted to be…either too optimistic or not optimistic enough…in our financial projections.…To circumvent that problem, in this chapter we…will be learning how to break down revenue…into manageable pieces.…We will project those pieces individually…and then put them back together in order to get…a realistic revenue projection.…
In this chapter, we will be focusing mainly…
Author
Released
9/9/2014- Distinguish between forecasting and planning.
- Recall the pros and cons of bottom-up projection.
- Explain how a finance manager can utilize a sales pipeline in business projections.
- Describe how a company can forecast its gross margin by product.
- Identify the pros and cons of using top-down projection.
- Recognize how business plans utilize forecasts.
- Summarize how to develop a set of worst-case scenarios.
Skill Level Intermediate
Duration
Views
Related Courses
-
Excel 2013 Essential Training
with Dennis Taylor6h 32m Intermediate
-
Introduction
-
Welcome42s
-
-
1. Financial Projection Basics
-
Financial projections1m 34s
-
-
2. Estimating Volumes, Price, and Revenue
-
Revenue projection basics1m 46s
-
Preparing past P&Ls3m 40s
-
Market-driven forecasting2m 46s
-
-
3. Estimating Cost of Production and Margin
-
4. Estimating Operating Expenses
-
Projecting fixed OPEX1m 55s
-
Projecting variable OPEX1m 41s
-
5. The Top-Down Approach
-
The exit methodology2m 15s
-
6. Setting Up Targets
-
Moving from forecast to plan2m 10s
-
Conclusion
-
Next steps1m 10s
-
- Mark as unwatched
- Mark all as unwatched
Are you sure you want to mark all the videos in this course as unwatched?
This will not affect your course history, your reports, or your certificates of completion for this course.
CancelTake notes with your new membership!
Type in the entry box, then click Enter to save your note.
1:30Press on any video thumbnail to jump immediately to the timecode shown.
Notes are saved with you account but can also be exported as plain text, MS Word, PDF, Google Doc, or Evernote.
Share this video
Embed this video
Video: Revenue projection basics