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using-offtoa:assumptions:revenue-assumptions:sales-model [2016/05/26 19:35] 127.0.0.1 external edit |
using-offtoa:assumptions:revenue-assumptions:sales-model [2016/09/19 12:58] (current) |
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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. |
| We can categorize sales modeling techniques into three rough groups: top-down, bottom-up, and wild-ass guesses. | We can categorize sales modeling techniques into three rough groups: top-down, bottom-up, and wild-ass guesses. | ||
| - | Offtoa gives you the ability to predict revenues in all multiple ways and save them simultaneously. Then you can easily click on any one of them and see what your company looks like when using that particular sales prediction technique. | + | Offtoa gives you the ability to predict revenues in multiple ways and save them simultaneously. Then you can easily click on any one of them and see what your company looks like when using that particular sales prediction technique. |
| Here are some of the techniques that <php>echo $conf['comp_name'];</php> offers: | Here are some of the techniques that <php>echo $conf['comp_name'];</php> offers: | ||
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| - Market and Sales Dollars (or Effort) //to Product//. For each product in each market in each year (or month), estimate how many dollars (or person-hours) will be spent promoting and selling the product, and the relationship between those dollars (or person-hours) and eventual sales revenues. | - Market and Sales Dollars (or Effort) //to Product//. For each product in each market in each year (or month), estimate how many dollars (or person-hours) will be spent promoting and selling the product, and the relationship between those dollars (or person-hours) and eventual sales revenues. | ||
| - | - Market and Sales Dollars (or Effort) //to Customers//. For each market in each year (or month), estimate how many dollars (or person-hours) will be spent promoting and selling the product, and the relationship between those dollars (or person-hours) and customer acquisition. Also predict how much money each customer will spend (and how often and for how long) and how many referrals that customer will make. | + | - Market and Sales Dollars (or Effort) //to Customers//. For each market in each year (or month), estimate how many dollars (or person-hours) will be spent promoting and selling, and the relationship between those dollars (or person-hours) and customer acquisition. Also predict how much money each customer will spend (and how often and for how long) and how many referrals that customer will make. |
| - | **[[faqs:what-are-WAGS|What are WAGs for revenue prediction?]]** | + | **[[faqs:sales:what-are-WAGS|What are WAGs for revenue prediction?]]** |
| - | **[[faqs:what-are-top-down|What are top-down techniques for revenue prediction?]]** | + | **[[faqs:sales:what-are-top-down|What are top-down techniques for revenue prediction?]]** |
| - | **[[faqs:what-are-bottom-up|What are bottom-up techniques for revenue prediction?]]** | + | **[[faqs:sales:what-are-bottom-up|What are bottom-up techniques for revenue prediction?]]** |
| **[[https://www.offtoa.com/wp/factors-driving-sales-start/|What factors drive sales in a start up?]]** | **[[https://www.offtoa.com/wp/factors-driving-sales-start/|What factors drive sales in a start up?]]** | ||
