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Forecasting Models: What You Need to Know

Up and Running

Whether your business is brand new or it’s been around for a while, you’ve probably thought about putting together a financial forecast. Forecasting and comparing your actuals with what you projected should be a regular and ongoing part of your process—not something you do once, or once a year. What is forecasting?

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Top Startup Mistake: Unrealistic Forecasts

Up and Running

When I asked the standard “How are you,” he answered: “If I see another hockey stick forecast this week, I’m going to throw something at somebody.”. That was so long ago that I had to ask him to explain the hockey stick metaphor. ” See Also: How to Forecast Sales. .” Growth is good.

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Sales Forecasting: A Curated List of Our Best Resources

Up and Running

When it comes to starting and managing a business, forecasting your sales is essential. Having a sales forecast can help you budget and manage your business’s funds, create a plan for expansion, and avoid unpleasant surprises. The basics of sales forecasting. How to Forecast Sales. Just Do a Sales Forecast.

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What Makes a Sales Forecast Credible?

Up and Running

So for me, what makes a sales forecast credible? I want to see a sales forecast with drivers. So if your numbers are here, going up in a hockey stick—and let’s just say this is your hockey stick—and your marketing expenses go up, and how do I do? Well then, that helps makes a sales forecast credible.

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How much of my business do I have to give to an investor?   

Berkonomics

Careful about “hockey stickforecasts. Sophisticated businesses will also create a cash flow projection for the same period, showing cash used and remaining at the end of each period. And note that projections showing “unbelievable” rapid growth are always suspect. How much money can you get?

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Flexible VC, a New Model for Companies Targeting Profitability

David Teten

In all these cases, capital is provided to fuel forecasted growth without creating a commitment to a particular vision for future funding rounds, exit goals, and associated blitzscaling. These variations in founder-alignment allow Flexible VCs to specialize in the types of companies they work with. The State of Flexible VC.

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8 Common Business Plan Mistakes

Up and Running

Hockey stick” shaped growth projections. Here’s how we suggest creating your sales forecast. The more items on the list, the less the importance of each. Sales grow slowly at first, but then shoot up boldly with huge growth rates, as soon as “something” happens. Have projections that are conservative so you can defend them.