revenue

Entrepreneurship
revenue
Is a result when sales exceed the
cost to produce goods or render the
services. Revenue is recognized
when earned, whether paid in cash
or charged to the account of the
customer.
 Factors in
forecasting
revenues
The Economic Condition of
the Country
The overall health of the country's
economy significantly influences consumer
behavior. A growing economy tends to
boost consumer confidence and
expenditure. Entrepreneurs must identify
and understand economic conditions to
make informed estimates, as a thriving
economy often translates to better
business prospects.
Competing Businesses /
Competitors
Analyzing competitors is crucial for setting
realistic revenue goals. Monitoring the
number of products sold daily and
understanding market demand helps
establish benchmarks for stocking
inventory and gauging market share. This
information allows entrepreneurs to align
their strategies with customer demands
and stay competitive in the market.
Changes in the Community
Adapting to changes in customer
demographics, lifestyle, and buying
behavior is vital. Anticipating and
responding to shifts in the market, such as
trends influenced by popular culture or
community developments, enables
entrepreneurs to maximize sales potential
and stay relevant to consumer preferences.
Internal Aspects of the
Business
Internal factors, such as plant capacity, raw
material availability, and the workforce, play
a pivotal role in revenue forecasting. For
instance, a business's production capacity
limits the quantity of goods available for
sale. Considering these internal aspects
helps entrepreneurs set realistic revenue
targets based on the business operational
capabilities.
Markup Cost per Unit

Projecting Potential
Revenues of Chosen
Business
Monthly Daily
Revenues Revenues
MARK UP
MARK UP
Markup is the additional amount
of money or percentage that is
added to the cost of a product
to determine its selling price.
EXAMPLES
FORECASTING
MONTHLY AND
YEARLY REVENUES
FORECASTING THE
COST TO BE
INCURRED
Entrepreneurship
cost of goods
sold/ cost of
sales
Cost of Goods Sold/
Cost of Sales
It refer to the amount of merchandise or
goods sold by the business for given
period of time. This is computed by
adding the beginning inventory to the
Net Amount of Purchases to arrive with
Cost of Goods available for sale from
which the Merchandise Inventory, end is
subtracted.
merchandise
inventory,
beginning
merchandise
inventory, beginning
Refers to goods and merchandise at the
beginning of operation of business or
accounting period.
purchases
purchases
Refers to the merchandise or goods
purchased.

Example: Getting a new pair of shoes

merchandise
inventory, end
merchandise
inventory, end
Refers to goods and merchandises left
at the end of operation or accounting
period.
freight-in
freight-in
Refers to amount paid to transport
goods or merchandise purchased from
the supplier to the buyer. In this case, it
is the buyer who shoulders these cost.
EXAMPLES