Bottom-Up

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 Offtoa to determine how much revenue you will produce.

Bottom-up techniques:

• Ask you to determine how you are going to actually find leads (or how they are going to find you),
• 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.
• 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.

Many bottom-up approaches exist, including:

• Use Marketing and Sales People Effort to Drive Unit Sales
• Use Marketing and Sales Dollars Spent to Drive Unit Sales
• Use Marketing and Sales to Drive New Customer Acquisition
• Define Availability of Products Manufactured
• 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.