How to forecast revenue based on growth rate

In this overview, Jacco explains how to perform a multi-year forecast based on historical data. A few key points that he covers in detail, along with the math and models behind this: - Historically, organizations use capacity-based forecasting, in which the average capacity of a salesperson is multiplied by the number of salespeople. - In capacity-based forecasting, growth is therefore perceived as an outcome of a group’s capacity, and often by a single department such as sales or marketing. - It is recommended to use a growth-rate-based forecast for a multi-year forecast due to the inaccuracy of a capacity-based forecast. - A growth-rate-based forecast reflects how the entire system performed over time. - Such a forecast, incorporating the system rather than the individual salespeople, is more accurate because it reflects how every part of the organization contributed in previous years. - A system-based forecast includes the hiring and onboarding process of the HR department. Subscribe to get more research and frameworks from WbD: http://bit.ly/Sub2WBD - - - - - Get more frameworks from WbD: https://winningbydesign.com/ https://www.linkedin.com/company/winningbydesign Learn more from WbD Founder Jacco van der Kooij on LinkedIn: https://www.linkedin.com/in/jaccovanderkooij Want to reach out? contact@winningbydesign.com - - - - - How to forecast revenue based on growth rate https://youtu.be/aCc3TmcShrs https://www.youtube.com/c/WinningbyDesign