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using-offtoa:assumptions:revenue-assumptions:sales-model:bottom-up [2016/05/26 19:37] 127.0.0.1 external edit |
using-offtoa:assumptions:revenue-assumptions:sales-model:bottom-up [2016/05/28 14:40] (current) mdavis |
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| ==== Why Model Sales? ==== | ==== Why Model Sales? ==== | ||
| - | Offtoa is a tool that produces and analyzes //pro forma // financial statements for your startup company based solely on your statement of business assumptions. One of the key assumptions will be how much revenue your company will generate by selling its product(s) to the intended market(s). The expression "Modeling Sales" means the set of assumptions that enable<php>echo $conf['comp_name'];</php>to determine how much revenue you will produce. | + | Offtoa is a tool that produces and analyzes //pro forma // financial statements for your company based solely on your statement of business assumptions. One of the key assumptions will be how much revenue your company will generate by selling its product(s) to the intended market(s). The expression "Modeling Sales" means the set of assumptions that enable <php>echo $conf['comp_name'];</php> to determine how much revenue you will produce. |
| ==== What is a Bottom-Up Sales Modeling Technique? ==== | ==== What is a Bottom-Up Sales Modeling Technique? ==== | ||
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| * Ask you to define the efficiency of the "engine" that converts those leads into customers. | * Ask you to define the efficiency of the "engine" that converts those leads into customers. | ||
| * Ask you to model the viral and organic growth engines of the company. | * Ask you to model the viral and organic growth engines of the company. | ||
| - | * Once your company launches, you willbe modeling the effectiveness of your company's revenue this way, so it is a good idea to plan the company from the start using such a model. | + | * Once your products launch, you will be modeling the effectiveness of your company's revenue this way, so it is a good idea to plan from the start using such a model. |
| Many bottom-up approaches exist, including: | Many bottom-up approaches exist, including: | ||
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| * Define Availability of Raw Materials | * Define Availability of Raw Materials | ||
| - | Note: Some of the above has been extracted from Davis, A., //Will Your New Start Up Make Money//?, Scrub Oak Press, 2014. | + | |
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