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1. Presented
by:
Date:
Michele
Middlemore
CA,
CPA
CFA
CBV
Michele.middlemore@mnp.ca P:
416-­‐515-­‐5036
March
9,
2016
FORECASTING
REVENUE

2. Page 2
ATTRIBUTES
OF
A
GOOD
FORECAST
• Robust
financial
model
– Balance
Sheet
– Income
Statement
– Cash
Flow
(monthly)
• Flexible
for
key
variables
to
allow
for
sensitivity
analysis
• Clearly
stated
assumptions
and
verifiable
support
for
same
– Industry
benchmarks
• Growth
rates
(ramp
up/steady
state)
• Profit
margins
• Turnover
ratios
(e.g.
inventory/accounts
receivable)
• Industry
specific
critical
success
factors
(subscriber
rates/page
views
etc.)
– Underlying
contracts/purchase
orders
– Strategic
partnerships
– Supplier
quotes

3. Page 3
ATTRIBUTES
OF
A
GOOD
FORECAST
• Realistic
and
internally
consistent
assumptions
• Line
item
detail
– Revenue
verticals
• Contingency
provision
• Sources
and
Uses
of
Funds
– Operating
expenses
– Capital
expenditures
– R&D

4. Page 4
SOURCES
OF
INFORMATION
• Technology
incubators/Innovation
hubs
– MaRS Market
Intelligence
• Peers/networking
– Serial
Entrepreneurs
– Angel
Groups
– Financial
Advisors
– Venture
Capital
Firms
– Industry
Participants
• Internet
– Government
websites
(e.g.
Statistics
Canada)
– Google