Sales Forecast

Sales Forecast

Analysis, Budgeting, Financial Planning and Analysis, Forecasting, Income Statement, Ratios, Sales Forecast
Putting together a sales forecast is one of the very important first steps for any starting business and is of great value. Even if you do not have a complete business plan, having at least a sales forecast is a great advantage for managing successfully your business. Still many entrepreneurs complain that building a forecast with any degree of accuracy is nearly impossible and takes great deal of time, so they try to avoid it. Don't be one of them. Your sales forecast is not about guessing the future. It is about laying out the sales drivers and trends while considering your business, market, customers and competitors. After you have reasonable and sound sales forecast at your disposal you should start monitoring your monthly results versus your forecast and take the…
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Finance Essentials: Budgeting

Finance Essentials: Budgeting

Analysis, Balance Sheet, Budgeting, Cash Flow, Finance Essentials, Financial Planning and Analysis, Financial Statements, Forecasting, Income Statement, Ratios
Budgeting and forecasting - a lot of entrepreneurs are discouraged the moment they hear about it. It sounds like an impossible task to predict the future and often is overlooked because of its complexity. Of course, how could it be possible to say: "By the end of next twelve months I will earn $ X  income and generate $ Y cash."? Actually you just need a little change in perspective and you will start seeing your operating budget more like map towards your targets, and your key drivers showing your way to your targets. Lets take a look at the budgeting and forecasting process in the article below, to make it clear for you. As we agreed in the beginning it is difficult to predict exactly the future. Of course there…
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Finance Essentials: Income Statement

Finance Essentials: Income Statement

Analysis, Finance Essentials, Financial Planning and Analysis, Financial Statements, Income Statement
The Income Statement shows the profitability of the company over a period of time and it starts with the sales revenue. Often entrepreneurs without financial knowledge mistake revenue with income. Income is at the bottom of the statement and it is calculated by deducting the costs from the sales revenue. To avoid such mistakes lets find out more details about the Income statement in the article below. Below sales revenue is the cost of sales – the direct costs that incur to make the products. This line includes the materials used for building the product, the labor for putting the materials together, the freight costs for delivering the finished products and basically all production and transportation costs that could be assigned to a specific product. Not all businesses have direct costs -…
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Finance Essentials for Startups and Small Businesses

Finance Essentials for Startups and Small Businesses

Analysis, Balance Sheet, Budgeting, Cash Flow, Finance Essentials, Financial Planning and Analysis, Financial Statements, Forecasting, Income Statement
No matter how promising your startup or company is, not having a sound financial understanding of it is a risky business. Yes, you could leave the finance to the bookkeepers and accountants, but you need to understand the underlying financial flows of your business, because that’s the key to understand how to manage your business successfully. Knowing your company’s finance should give you as broad information about where your business is headed to, as well as specific information such as: how much you should spend on a marketing project; would such investment be profitable, etc. The financial tools that we review in our articles and our models will help you to manage your day-to-day business and most importantly will help you to build a sound plan for the future of your…
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