Wild-Ass Guess (WAG)

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 enableOfftoato determine how much revenue you will produce.

Wild ass guesses (WAG) are really not techniques per se. They are, well, just wild ass guesses. They:

• Ask you to estimate how many units you will sell (or customers you will have) each month (or year).
• Educated third parties (e.g., investors, lenders, board members) will not believe WAGs. However, a WAG may be all you have when you create your first financial plan. I highly recommend that you replace the WAG with something more reasonable before you show your financial plan to anybody else!

Many WAG approaches exist; for example:

• Predict number of units sold per month (or year)
• Predict number of customers you will have per month (or year)
• Predict how much revenue you will generate per month (or year) - the WAGgiest of the WAGs.