Revenue Model and Sales Forecast

A revenue model is a framework for generating financial income. It identifies which revenue source to pursue, what value to offer, how to price the value, and who pays for the value. It is a key component of a company's business model.

A sales forecast is an estimate of the quantity of goods and services you can realistically sell over the forecast period, the cost of the goods and services, and the estimated profit. Typically, this is done by: Making a list of the goods and services to be sold. Estimating of the number of each to be sold.

Break-even (or break even), often abbreviated as B/E in finance, is the point of balance making neither a profit nor a loss. Any number below the break-even point constitutes a loss while any number above it shows a profit.

Capital is another word for money and working capital is the money available to fund a company’s day-to-day operations – essentially, what you have to work with. Start -up working capital is cash in hand required until you break even or stop feeding the business.

Gross profit is the profit a company makes after deducting the costs associated with making and selling its products, or the costs associated with providing its services. Gross profit will appear on a company's income statement and can be calculated by subtracting the cost of goods sold (COGS) from revenue (sales). These figures can be found on a company's income statement.Gross profit may also be referred to as sales profit or gross income.

Profit simply means the revenue that remains after expenses; it exists on several levels, depending on what types of costs are deducted from revenue. Net income, also known as net profit, is a single number, representing a specific type of profit. Net income is the renowned bottom line on a financial statement.