ENTREPRENEURSHIP

TRAVEL TIME FROM HOME TO SCHOOL

DAY ESTIMATED TIME ACTUAL TIME

MONDAY 42 MINUTES 35 MINUTES

TUESDAY 38 MINUTES 46 MINUTES

WEDNESDAY 40 MINUTES 40 MINUTES

THURSDAY 40 MINUTES 50 MINUTES

FRIDAY 39 MINUTES 32 MINUTES

FORECASTING
is the process of using time series data in order to
estimate and predict future developments in areas such as
sales, revenue and demand for resources and inventory.
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.

1. SALES
2. SERVICE INCOME
Factors that can affect the
business
• The economic condition of the country. When the
economy grows, its growth is experienced by the
consumers. Consumers are more likely to buy products
and services.
• The competing businesses or competitors. Observe how your
competitors are doing business. Since you share the same market
with them, information about the number of products sold daily or
the number of items they are carrying will give you idea as to how
much your competitors are selling.
• Changes happening in the community. Changes
happening in the environment such as customer
demographic, lifestyle and buying behavior gives the
entrepreneur a better perspective about the market.

• The internal aspect of the business. Another factor that affects

forecasting revenues is the business itself. Plant capacity often
plays a very important role in forecasting.
FORMULAS:

• Mark Up Price = Cost

Key x desired mark up percentage
milestones Awards

To create your own, To create your own,

• Selling Price = Costchoose
+ Mark
a topicUp
that choose a topic that
interests you. interests you.

• Projected Daily Revenue = Selling Price x Projected volume

• Projected Monthly Revenue = Projected

Start and release
daily revenue x 30 days
Events New products release

To create your own, To create your own,

• Projected Yearly
choose a topic that Revenue = Projected
choosedaily
a topicrevenue
that x 365 days To create your own,
choose a topic that
interests you. interests you.
interests you.
EXAMPLE:

Prepare the Projected Revenue

Key milestones Awards

To create your own, To create your own,

• Daily choose a topic that choose a topic that
interests you. interests you.
• Monthly
• Yearly
Start and release Events New products release

To create your own, To create your own,

To create your own,
choose a topic that choose a topic that
choose a topic that
interests you. interests you.
interests you.
SITUATION:
Ms. Fashion Nista recently opened her dream business and named Fit Mo’to
Ready to Wear Online Selling Business, an online selling business which
specializes in ready to Keywear clothes for teens and young
milestones adults. Based on her
Awards

initial interview among several

To create your own,online selling businesses, the
To create your own,average number of
t-shirts sold every day isa10
choose topicand
that the average pair of fashion
choose jeans sold every day
a topic that
interests you. interests you.
is 6. From the information gathered, Ms. Nista projected the revenue of her Fit
Mo’to Ready to Wear Online Selling Business.
She gets her supplies at a local RTW dealer in the city. The cost per piece of t-
shirt is 90 pesos,
Start and release
while a pair of fashion jeans
Events
costs 230 pesos per piece. She
New products release
then adds a 50 percent mark up to every piece of RTW sold.
To create your own, To create your own,
To create your own,
choose a topic that choose a topic that
choose a topic that
interests you. interests you.
interests you.
PROJECTION:
There is an average increase of revenue every month by 5 percent except
June, July to October and December. While the month of June has twice
Key milestones Awards
the increase from previous month, 10 percent. Let us consider that
months covering July to
To create October
your own,
choose a topic that
are considered to
To createbe
yourOff-Peak
own,
choose a topic that
months,
therefore sales from interests
July to you.October are expected to decrease.
interests you. It is
assumed that there is no increase in revenue from July to August while
from August to October the decrease in revenues is 5 percent from
previous month. Since revenues from sales of RTW’s are considered to
Start and release Events New products release
be seasonal, it assumed that there is 10 percent increase in revenue from
November to own,
To create your December. To create your own,
To create your own,
choose a topic that choose a topic that
choose a topic that
interests you. interests you.
interests you.
 Projected Daily Revenue
Fit Mo'to Ready to Wear Online Selling Business

PRODU
PRODUCT COST PER UNIT MARK-UP SELLING PRICE PROJECTED PROJECTED
CT VOLUME REVENUE
(DAILY)
T-Shirts 90.00 45.00 135.00 10 1,350.00
Jeans 230.00 115.00 345.00 6 2,070.00

Total 320.00 160.00 480.00 16 3,420.00

 Projected Monthly and Yearly Revenue
Fit Mo'to Ready to Wear Online Selling Business

PRODU
PRODUCT SELLING PRICE PROJECTED PROJECTED PROJECTED PROJECTED
CT VOLUME REVENUE VOLUME REVENUE
(MONTHLY) (YEARLY)
T-Shirts 135.00 300 40,500.00 3,650 492,750.00
Jeans 345.00 180 62,100.00 2,190 755,550.00

Total 480.00 480 102,600.00 5,840 1,248,300.00

 Projected Monthly Revenue
Fit Mo'to Ready to Wear Online Selling Business

MONTH JANUARY FEBRUARY MARCH APRIL MAY JUNE

REVENUE 102,600.00 107,730.00 113,116.50 118,772.33 124,710.95 137,182.05

MONTH JULY AUGUST SEPTEMBER OCTOBER NOVEMBER DECEMBER

REVENUE 144,041.15 144,041.15 136,839.09 129,997.14 136,497.00 150,146.70

IMPORTANT ASSUMPTIONS:

• February to May - Increase of 5% from previous revenue

Key milestones Awards
• June - Increase of 10% from previous revenue
To create your own, To create your own,
• July to Augustchoose - The same
a topic that Revenue choose a topic that
interests you. interests you.
• September to October - Loss 5% from previous revenue
• November - Increase 5% from previous revenue
• December - Increase 10% from previous revenue
Start and release Events New products release

To create your own, To create your own,

To create your own,
choose a topic that choose a topic that
choose a topic that
interests you. interests you.
interests you.
WHAT IS FORECASTING?
ACTIVITY: Prepare projected daily, monthly and yearly revenue.

SITUATION:
Key milestones Awards
Aling Minda is operating a buy and sell business, she sells broomsticks
(walis tingting) and dustyour
To create panown,in her stall at a local market.
To create your own,She gets her
choose a topic that choose a topic that
broomsticks from a interestslocal supplier
you. for 25 pesos each and
interests you.the dust pan for 50
pesos. She then adds 50 percent mark-up on each broomstick and dust pan.
Every day, Aling Minda can sell 30 broomsticks and 20 dust pan a day.
PROJECTION:
Start and release Events New products release
There are assumed increases in sales every month. From January to May, 5
percent increase
To create your own, from previous sales. To createFor the month of June, To
your own, 10create
percent
your own,
choose a topic that choose a topic that
increase from
interests you. previous sales. For the months
interests you. July to December, record
choose the
a topic that
interests you.
same sales every month.
THANK
YOU