Revenue Forecasting

Definition of Revenue Forecasting

The practice of predicting future revenue based on historical data and market trends.

Explanation of Revenue Forecasting

Revenue forecasting is the process of estimating future income based on historical data, market trends, and business strategies. This forecast helps businesses plan and set financial goals, allocate resources, and make informed decisions about growth strategies. Accurate revenue forecasting involves analyzing past performance, identifying patterns, and considering factors such as seasonality, economic conditions, and industry trends. Businesses often use various methods, such as time series analysis, regression models, and scenario planning, to create revenue forecasts. Regularly updating and reviewing forecasts helps businesses stay agile and adapt to changing market conditions. By understanding their projected revenue, companies can better manage their finances, set realistic targets, and drive sustainable growth.

This dictionary entry was written by

Per-Gulbrand Peter Braathen

With a foundation in doctoral-level research, Per-Gulbrand Peter Braathen is a seasoned expert in the areas of marketing, branding and communication. His proficiency extends to marketing management, branding and communication strategy. Braathen's experience is underscored by his rich background from various industries, including entertainment. A distinguished alumnus of the USC Marshall School of Business, Braathen boasts a Master of Science in Marketing, complemented by a Graduate Certificate in the Business of Entertainment from the USC School of Cinematic Arts as well as two undergraduate Bachelor degrees from the esteemed University of Southern California.