Foreca

Revenue is a result wh
services. Revenue is re
to the account of the c
and Service Income. S
merchandising or retai
earned by rendering se

The entrepreneur wou

credible and as accura
estimating potential re
internal factors that ca
estimating potential re
internal factors that ca
should serve as basis i
are:
1. The economic cond
growth is experienced
products and services.
health of the economy
economy makes good
2. The competing bus
are doing business. Sin
about the number of p
carrying will give you
about the number of p
carrying will give you
will give you a benchm
business in order to co
better estimate as to ho
3. Changes happening
environment such as c
give the entrepreneur a
should always be keen
business. For example
their fashion trend. Be
entrepreneur to maxim
4. The internal aspect
4. The internal aspect
revenues in the busine
role in forecasting. Fo
puto every day; theref
every day. The numbe
capacity of the plant, a
number of salesperson
entrepreneur.
recasting Revenues and
t when sales exceed the
is recognized when earn
he customer. Other term
me. Sales is used especia
retailing, while Service
g services.

would want his/her forec

curate as possible to avo
al revenue for the busine
t can affect the business
al revenue for the busine
t can affect the business
sis in forecasting revenu

ondition of the country

ced by the consumers. C
ces. The entrepreneur m
omy in order to make inf
ood business.
businesses or competito
. Since you share the sam
of products sold daily or
you idea as to how muc
of products sold daily or
you idea as to how muc
nchmark on how much p
o cope with the custome
o how much market sha
ning in the community.
as customer demograph
eur a better perspective a
keen in adapting to these
mple, teens usually follow
. Being able to anticipat
aximize sales potential.
pect of the business. An
pect of the business. An
siness itself. Plant capac
. For example, a “Puto”
erefore, he can only sell
mber of products manufa
nt, availability of raw m
rsons determine the amo
 and Costs Departmen
the cost to produce goo
earned, whether paid in
erms related to revenue
ecially when the nature
ice Income is used to re

orecasting for his/her sm

avoid complications in t
siness, factors such as e
ness must be considered
 siness, factors such as e
ness must be considered
venues of the business. T

ntry. When the economy

rs. Consumers are more
ur must be able to identif
e informed estimates. A

etitors. Observe how yo

e same market with them
y or the number of item
much your competitors a
 y or the number of item
much your competitors a
ch products you need to
omer demand. This will
share is available for yo
nity. Changes happening
aphic, lifestyle and buyi
ive about the market. Th
hese changes in order to
ollow popular celebrities
ipate these changes allow
al.
. Another factor that affe
. Another factor that affe
apacity often plays a ver
to” maker can only mak
sell as much as 250 piec
nufactured and made de
w materials and labour a
amount of revenues earn
ment
goods or render the
d in cash or charged
nue include Sales
ure of business is
to record revenues

r small business as
in the future. In
as external and
ered. These factors
as external and
ered. These factors
ss. These factors

omy grows, its

ore likely to buy
entify the overall
s. A healthy

w your competitors
hem, information
tems they are
ors are selling. This
 tems they are
ors are selling. This
d to stock your
will also give you a
or you to exploit.
ning in the
buying behavior
. The entrepreneur
er to sustain the
ities especially in
allows the

affects forecasting
 affects forecasting
very important
make 250 pieces of
pieces of puto
e depends on the
ur and also the
earned by an
Now that all factors af
calculate and project p
below shows an examp
Selling Business.
Example: Ms. Fashion
Fit Mo’to Ready to We
which specializes in re
on her initial interview
number of t-shirts sold
sold every day is 6. Fro
revenue of her Fit Mo’
supplies at a local RTW
revenue of her Fit Mo’
supplies at a local RTW
pesos, while a pair of f
50 percent mark up to
Mark up refers to the a
price. The formula for
Mark Up Price = ( Cos
Mark Up for T-shirt =
Mark Up for T-shirt =
In calculating for the s
Selling Price = Cost +
Selling Price = 90.00 +
Selling Price for T-shir
Selling Price for T-shir
Table 2 shows the proj
selling business. Comp
multipying daily reven
For example, in Table
projected revenue it is
Projected Monthly Rev
Projected Monthly Rev
Projected Monthly Rev
On the other hand, the
the monthly revenue b
revenue is as follows.
revenue is as follows.
Projected Yearly Reve
Projected Yearly Reve
Projected Yearly Reve
s affecting forecasting r
ct potential revenues of
ample of revenues forec

hion Nista recently open

o Wear Online Selling B
n ready to wear clothes
view among several onli
sold every day is 10 and
. From the information g
Mo’to Ready to Wear O
RTW dealer in the city. T
Mo’to Ready to Wear O
RTW dealer in the city. T
of fashion jeans costs 2
p to every piece of RTW
the amount added to the
for getting the mark up
Cost x Desired Mark Up
t = ( 90.00 x .50)
t = 45.00
he selling price, the form
st + Mark Up
00 + 45.00
shirt = 135.00
 shirt = 135.00
projected monthly and y
omputations about the m
evenues by 30 days ( 1 m
ble 1 the daily revenue i
it is multiplied by 30 day
Revenue = Projected D
Revenue = 3,420.00 x 3
Revenue = 102,600.00
the projected yearly rev
ue by 12 months. The ca
ws.
ws.
evenue = Projected Dail
evenue = 3,420.00 x 365
evenue = 1,248,300.00
ng revenues are identifie
s of your chosen busines
orecasted in a Ready to

opened her dream busine

g Business, an online se
hes for teens and young
online selling businesses
and the average pair of
on gathered, Ms. Nista p
r Online Selling Busine
ity. The cost per piece of
 r Online Selling Busine
ity. The cost per piece of
ts 230 pesos per piece. S
TW sold.
the cost to come up wit
up price is as follows:
k Up Percentage)

formula is as follows:
nd yearly revenue of Ms
he monthly revenue is c
1 month).
ue is 3,420.00. To get th
0 days. Therefore,
d Daily Revenue x 30 d
0 x 30
.00
revenue is computed by
e calculation for project
Daily Revenue x 365 da
365
00
 tified, you can now
iness. The table
y to Wear Online

siness and named it

e selling business
ung adults. Based
sses, the average
r of fashion jeans
sta projected the
siness. She gets her
ce of t-shirt is 90
siness. She gets her
ce of t-shirt is 90
ce. She then adds a

with the selling

ws:

s:
 Ms. Nista’s online
is calculated by

et the monthly

30 days

d by multiplying
jected yearly
5 days
Table 3 shows the proj
The table shows an ave
except June, July to Oc
twice the increase from
months covering July t
therefore sales from Ju
that there is no increas
October the decrease i
revenues from sales of
there is a 10 percent in
Computation for assum
follows:
Computation for assum
follows:

Projected Monthly Rev

Projected Monthly Rev
Projected Monthly Rev

Projected Revenue for

Projected Revenue for
Projected Revenue for

On the other hand, dec

Projected Monthly Rev
Projected Monthly Rev
Projected Monthly Rev
Projected Monthly Rev

Projected Revenue for

Projected Revenue for
Projected Revenue for
projected monthly reven
n average increase of rev
o October and Decembe
from the previous month
uly to October are consi
m July to October are ex
rease in revenue from Ju
se in revenues is 5 perce
s of RTW’s are consider
nt increase in revenue fr
ssumed increase of reven
ssumed increase of reven

Revenue (Increase) = R
Revenue (Increase) = 1
Revenue (Increase) = 5

for February = Revenue

for February = 102,600
for February = 107,730

decrease in revenue is c
Revenue (Decrease) = R
Revenue (Decrease) = R
Revenue (Increase) = 1
Revenue (Increase) = 7

for September = Reven

for September = 144,04
for September = 136,83
evenues covering one ye
revenue every month b
mber. While the month o
onth by 10 percent, let u
onsidered to be Off-Peak
e expected to decrease. I
m July to August, while
ercent from previous m
idered to be seasonal, it
e from November to De
eveneue on specific mon
eveneue on specific mon

= Revenue (January) x
= 102,600.00 x .05
= 5,130.00

enue (January) + Amoun

600.00 + 5,130.00
730.00

is computed as follows
) = Revenue (August) x
) = Revenue (August) x
= 144,041.14 x .05
= 7,202.06

venue (August) - Amou

4,041.14 – 7,202.06
6,839.08
 e year of operation.
th by 5 percent
nth of June has
let us consider that
Peak months,
se. It is assumed
hile from August to
s month. Since
al, it assumed that
December.
months is as
 months is as

y) x 5 % Increase

mount of Increase

ows:
t) x 5 % Increase
t) x 5 % Increase

mount of Decrease