Forecast the Revenue

“The most reliable way to forecast the future is to try to understand the present.”

John Naisbitt, US Author 

To assess the viability of the startup, you need to do a projection of the revenue expected for a period of time. From the projection, you can then see the build up of the revenue over the period. The revenue projected is then used to obtain the proforma profit and loss. At the same time, a balance sheet to show the cash flows can be drawn up. These figures are then used to derive the key turning points ie the breakeven points for profit and cash flow. Details can be found in the following pages:

 

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The 8-Step Approach

Pick Relevant Attributes

Generate New Ideas

Select Best Ideas

Identify Income Sources

Work Out Costs

Forecast the Revenue

Assess and Iterate

Invest and Launch