Why do you think most long-term financial planning begins with sales forecasts? Put differently, why are future sales the key input?

4 Answers

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  • 2 months ago

    No income, no viable business.

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  • 2 months ago

    Because sales are first on the list with any standard financial statement format. There are sales, other income, categorized expenses, capital outlays, taxable income or loss, and book income or loss, all of equal importance. Sales are simply listed first.

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  • 2 months ago

    If projections don't make sense up front, then that's when one gets to revisit the strategy and decide if it's something to avoid altogether.

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  • Don G
    Lv 7
    2 months ago

    Because Sales are what drive the business and hopefully generate profit -  the key to any financial plan.

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