A forecast is your best educated guess at how much revenue and cost your business will generate in the coming years. The forecast can feel daunting for entrepreneurs, but don't worry - all you need to do here is make reasonable estimates based on your expertise and research. It's also a great idea to track down similar businesses so you can base your data on that benchmark.
But remember, forecasting is not about being 100% accurate. The job of a forecast is to help you visualize the potential needs of your new business ahead of time, so you can ensure you'll have adequate financial resources in place. Every business owner is qualified to forecast revenue — all you need is common sense, the ability to research the factors, and the motivation to make an educated guess.
You can see the forecast section of LivePlan in action on our Getting Started Videos page.
Forecast settings, such as the forecast length, start date, level of monthly detail, and more, can be adjusted in the Options section.
The articles below will show you how to complete each section of the LivePlan forecast and understand the standard financial statements automatically created from your forecast.