Forecasting revenue is an important skill because investors want visibility into it.

To forecast better, use the Trailing Four Months model.

In this model, calculate the growth rate by taking the average of the growth rate over the last four months.

Use this growth rate to forecast the remainder of the year.

Do the same for burn rate.

Set up a spreadsheet that calculates this automatically at the end of each month.

This will give you an ongoing estimate for the year. 

It compares sales and burn. 

This takes the guesswork out of forecasting and gives the investors a data-driven forecast.

Knowing where the company stands is important in making decisions.

Share this model with investors so they can track your progress.

Monitor your sales forecast with the trailing four-month model to understand where the company stands.

 

Thank you for joining us for the Startup Funding Espresso where we help startups and investors connect for funding.

Let’s go startup something today.
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Thank you for joining your host Hall T. Martin with the Startup Funding Espresso — your daily shot of startup funding and investing.
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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.