Join Rudolph Rosenberg for an in-depth discussion in this video The exit methodology, part of Making Business Projections.
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- The second methodology…is even simpler to calculate.…It is based on the performance you've been having…since the beginning of the year,…and compares it to your performance the previous year.…If, for example, you're at the beginning of May…and have generated $400,000 worth of revenue,…with this methodology you will want to compare it…to how we performed last year at the same time…and compare it to where we actually finished…the same year.…So, if for example,…last year we generated $300,000 of revenue…by that time of the year,…and the year finished at 1.2 million dollars…of revenue for the full year,…then we would simply calculate…that we have generated 25 percent of our revenue…by the end of April…by dividing 300,000 by 1.2 million dollars.…
Then, we would simply assume…that whatever we generated this year by the end of April,…would be equal to 25 percent of the full year.…So in this case,…since we have generated $400,000 by the end of April,…and this is supposed to represent 25 percent…of the expected full-year revenue,…
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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.