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Questions & Answers

Posted by Tamara Gehring on 2016-04-11 15:19:00
Title: Business Plan
Category: Operations

I am wondering how to estimate my possible revenue for the income statement on my business plan? I am in a completely new industry and have no idea where to even begin. Can someone help please and thanks.

Answer:

Fabio Campanella
2016-04-14 14:54:00

Estimating revenue on a new venture can be difficult. I generally tell my clients to start with what they know about the product or service they are selling. You need to make a realistic estimate on the volume of sales you will be able to achieve in your first few years. Come up with a range from worst case scenarios to best case. 

The key is to gather an intimate knowledge of your industry during this process. Factor in price discounts and other factors that affect startups. 

Speak to people with experience in your industry and ask about their first few years, this will provide you with excellent insight.