Hello, this is Hall T. Martin with the Startup Funding Espresso — your daily shot of startup funding and investing.
For sales forecasting, begin with your current sales funnel and revenue history.
The more you know about your sales process — lead generation, conversion, and time in funnel, the more accurate the forecast will be.
Use your current sales process for the first two years and then switch to your growth initiatives in years three to five.
If you are in a space with competitors with similar businesses, you can look at the ramp rates for those businesses to find the ballpark of sales growth you may achieve.
If your business has a core driver such as number of design-ins, then you can use this to drive the sales forecast.
If you have multiple products, you can list each product separately with its own revenue stream.
If you have a recurring revenue business, then you can start with your current customer base and add new customers at your current growth rate and include the churn rate.
Thank you for joining us for the Startup Funding Espresso where we help startups and investors connect for funding.
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Hall T Martin is the director of Investor Connect, which is a 501(c)(3) nonprofit dedicated to the education of investors for early-stage funding. All opinions expressed by Hall and podcast guests are solely their own opinions and do not reflect the opinion of Investor Connect. This podcast is for informational purposes only and should not be relied upon for the basis of investment decisions.