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How to Forecast Growth at a Startup

Entrepreneur:

Forecasting business revenue and expenses during the startup stage is really more art than science. Many entrepreneurs complain that building forecasts with any degree of accuracy takes a lot of time–time that could be spent selling rather than planning. But few investors will put money in your business if you’re unable to provide a set of thoughtful forecasts. More important, proper financial forecasts will help you develop operational and staffing plans that will help make your business a success.
  1. Start with expenses, not revenues.
  2. Forecast revenues using both a conservative case and an aggressive case.
  3. Check the key ratios to make sure your projections are sound.

via Alltheseideas.com.

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