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REVENUE BUILDER Forecast Tool
Updated: 08/26/2004


 
$99.00
Format: MS Excel

This tool is specifically designed to assist you in building a 3 year revenue forecast based on your market size, your estimated market share, your competitors' market share, and you average selling price. It also gives you the ability to build a 1 year (4 quarter) bottoms-up forecast based on identified customers and probability of securing the business. (This tool is made up of two programs and will be sent to you via a ZIP File). The first program is a an excel program that allows you to build up a 3 year revenue forecast for your company based on your estimated end-market size and your anticipated market share. The program allows for up to 5 products; 3 applications per product; and 5 customers per application. Each Product has its own spreadsheet. Simply enter in the data for that product and it will be added automatically to the SUMMARY page. See product description for a detailed explanation of this product. The second program is an excel spreadsheet that has been organized to allow you to build a "bottoms-up" revenue forecast for 4 quarters (a good way to check the 1st year estimate of your forecast from the first program. This tool aggregates the demand forecast by region and by product to comeup with a total revenue forecast based on your "probability" hurdle rate percentage. See product description for a detailed explanation of this product.



Software Notes:

About The Authors Of The Tool:

These tools were put together by a VP of Marketing with over 20 years experience in the high-tech industry and by a Chief Financial Officer with over 25 years experience in the high-tech industry.

If you have any question and or comments on this tool, please feel free to email us at jlk@kokulis.com

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Detail instructions on Market Size Tool:

This is a program that allows you to build up a 3 year revenue forecast for your company.
The program allows for up to 5 products; 3 applications per product; and 5 customers
per application.

Each Product has its own spreadsheet. Simply enter in the data for that product and it will
be added automatically to the SUMMARY page

Remember: Input your financial data into the blue highlighted cells only. The black highlighted
cells are calculated cells. Caution: any changes you make to a format or a calculated cell will
become final once you re-save the file.


The first few steps allow you to customize the worksheet to your company:

1) To Start, go to the PRODUCT 1 spreadsheet and input product 1's name in cell A4
Then, input the first of the forecast in cell d4. The other two years will calculate
automatically.

2) Next, input the products 2 main applications in cells B6 and B19. The third application is
currently labelled "All Other Applications." You can leave it as is or type in something
more specific to your company. Then, type in the descriptions of the market applications in
cells B7, B20 and B33. Finally, input the source of your forecast information in cells
B8, B21, and B34 (i.e market report, customer input, etc.)

The next few steps allow create your actual forecast:

3) To create your revenue estimate for 2004, input the unit volume forecast you have for
Product 1 in Application 1. Then input your best estimate of each of the top customers'
share of this volume in column D. Then, input your best estimate of what you think your
share will be with each those customers' volumes in column F. Then assign an Average
Selling Price to that volume in column H. This will give you a revenue estimate for
Product 1, Application 1.

4) Repeat the steps in Item 3 for Applications 2 & 3 to get a full revenue forecast in 2004 for
Product 1.

5) Repeat steps in Items 3 & 4 for years 2 & 3 to get a full 3-Year forecast for Product 1

6) Now, repeat this exercise for Products 2 thru 5 depending on how many products your
new company has.

7) Your 3-Year revenue forecast will be summed up (in Units, Dollars and ASAP) for product
and application in the SUMMARY worksheet.


Detail on 4QTR Revenue Projector:

This spreadsheet has been organized to allow you to build a "bottoms-up" revenue
forecast. The tool aggregates the demand forecast by region and by product to come
up with a total revenue forecast based on your "probability" hurdle rate percentage.


1) This program allows you to compile a sales forecast for a maximum of 5 sales regions
and 5 products.

2) Your first step in using this program should be to input the Sales Regions and Product
Names into spreadsheet named INPUT. This will customize the spreadsheet
to your company's specific information.

3) Next input the "Probability" hurdle rate on the top of the REVENUE SUMMARY
spreadsheet. Only forecasted items that meet or exceed that hurdle rate will be
included in the "rolled up" remand numbers.

4) Next input your unit and A.S.P. forecast for each customer in the REGION "x" DETAIL
spreadsheet (note: A.S.P. = Average Selling Price). Also, for each customer and
product assign a "Probability" number. This is your best estimate on the chance of
this business being realized. This data will automatically be summed into the
REGION "x" SUM spreadsheet for each region.

5) Each Region will sum the demand to the REVENUE SUMMARY and GROSS MARGIN
SUMMARY spreadsheets.

6) Input the product costs on the GROSS MARGIN SUMMARY spreadsheet to get a forecast
of your cost of sales and gross margins. If you need help in calculating your product costs
or in estimating your bill of materials, check out the PRODUCT COST program being
offered on our web-site.