Revenue Forecast Worksheet Business & Marketing Coursework (Coursework Sample)
Create a 5 year revenue forecast using the textbook for this course to assist you, pages 29 and 32 have examples and I have provided the template below to help you.
Week 2 - Template.docx
Create information for the company of your dreams (THIS IS A HAIR SALON FOR ME). Show five years of data.
This is a simple revenue forecast,
Provide an explanation of what assumptions you use to come up with revenue, then explain how revenue will be adjusted for the next four years. This means provide the numbers you use to calculate revenue.
Provide an explanation of what assumptions you use to come up with cost of goods sold (if used), and expenses for the first year. Then explain how COGS and expenses will be adjusted for the next four years. This means provide the numbers you use to calculate COGS and expenses.
Make sure you address all the accounts required Revenue less Cost of Goods Sold (not required for service company) equals Gross Profit Margin less Operating Expenses equals Net Profit.
Be consistent throughout the budget, display and explain your calculations (This means show your numbers).
Pro-forma Income Statement for the Salon Business
Assumptions
Revenue Model
I will employ the Commission Based Salon Revenue Model. According to ProjectHub (2017), the approach is high risk and turning higher profits is possible.
Service Delivery
My saloon will focus on delivering the highest quality to attract more customers. For that reason, it will have 20 stylists on the 1200 ft2 room. The rest of the room space will be utilized for add-on services designed to enhance the quality of service delivery.
Revenues
As indicated above, the salon will have 20 stylists. Each one of them will make an average of $800/week in Year 1 and this will increase by 3% annually. Stylists will work for 50 weeks/year and will be earning a commission of 30%. I intend to follow a low-price strategy to attract more customers and counter competition while turning profit. The strategy will be viable in the long-term because the salon will be located in a high-end location, which according to Farrell (2006), attracts a higher rent over revenue, in this case, 8% as provided for in the excel workbook.
Other Topics:
- Learning Key Terms. Business & Marketing CourseworkDescription: The article evaluates the modern entrepreneurship and corporate management. It outlines the external and internal factors that shape the operation of markets....2 pages/≈550 words| 1 Source | Other | Business & Marketing | Coursework |
- Business Plan Project: JBs Health And Research Laboratory Services Description: It was a course work to evaluate the students understanding with the current market and the knowledge to identify and start a business...29 pages/≈7975 words| 3 Sources | Other | Business & Marketing | Coursework |
- Research the Current Manufacturing Situation in CanadaDescription: Write about the current manufacturing situation in canada. i was required to use one source as a guide and incorporate my own....3 pages/≈825 words| 7 Sources | Other | Business & Marketing | Coursework |
