Revenue Models Explained28 minAdd to My Watch List Expand buttonYour revenue forecast anchors your entire business model. Your revenue model supports your management of cash flow, scaling, growth, staffing, expansion, as well as seasonal fluctuations. This Microcast provides an overview of revenue drivers, tips for forecasting, and business-specific models for estimating your revenue.
Revenue forecasting is a form of predicting the future – which makes it intimidating, and may be why so many entrepreneurs hazard wild guesses to get it over with as fast as they can. But tying income projections directly to marketing and sales activities and using industry research to justify growth predictions is essential if you want to transform your revenue model into a useful tool for tracking performance and staying on top of your cash flow. In this learning stream, we’ll look at what drivers create revenue, which revenue models work best for product, service, and subscription or membership businesses, and how to predict how fast your business will scale. Detailed worksheets accompanying this learning stream help you develop your own models that are succinct, understandable, accurate, and actionable.
You will learn:
- How can the revenue model be useful beyond the pitch deck?
- What are potential drivers of revenue?
- How can I project model if I’m selling product versus a service?
- What if I offer a variety of price points or billing rates?
- How should I factor in subscription income, and how do I predict churn?
- How can I accurately predict growth?
- How should I take into account new product launches and seasonal fluctuations when predicting growth?