Financial Plan: A Detailed Guide to Revenue Models

Revenue forecasting involves predicting the future, which can be daunting. This may explain why many entrepreneurs quickly make wild guesses to get it over with.

However, it is crucial to link income projections to marketing and sales activities and use industry research to support growth predictions. This transforms the revenue model into a valuable tool for monitoring performance and managing operating cash flow.

In this course, we will explore the factors that drive revenue and identify the most effective revenue models for different types of businesses. We will also learn how to estimate the speed at which your business will grow. Accompanying worksheets will assist you in creating concise, understandable, accurate, and actionable models.

This course is part of a comprehensive series on developing a robust financial plan. To learn more, you can watch the other courses in this series.

• Financial Plan: The Fundamentals for Your Business
• Financial Plan: A Guide on Staffing and Expense Models
• Financial Plan: A Guide on Financial Statements

Course Introduction

Your revenue forecast anchors your entire business model. Your revenue model supports your management of cash flow, scaling, growth, staffing, expansion, and seasonal fluctuations. This video provides an overview of revenue drivers, tips for forecasting, and business-specific models for estimating your revenue.

The entire foundation of your business model relies on your revenue forecast. It plays a crucial role in managing cash flow, scaling operations, driving growth, hiring staff, expanding your business, and dealing with seasonal fluctuations. This course offers valuable insights into revenue drivers, provides useful tips for accurate revenue forecasting, and explores business-specific models that can help you estimate your revenue effectively.

Revenue Model Walk-Through

We will begin by familiarizing ourselves with the revenue worksheet so that you have a clear understanding of how to navigate and utilize it effectively. This walkthrough will guide you through the Financial Models Worksheet, with a particular focus on the Revenue Worksheet tab. It will provide comprehensive instructions on how to input data into all the relevant fields within the spreadsheet, empowering you to confidently estimate your business's financials independently.

In this lesson, we will cover the usage of three different pricing models.

• Firstly, we will discuss the unit-based pricing model, which is commonly employed by product-based businesses like retailers, brands, and manufacturers.
• Secondly, we will explore the billing-based pricing model, primarily used by service-based businesses.
• Lastly, we will delve into the subscription-based pricing model, also known as the recurring revenue model, which has gained popularity in recent times. This model is applicable to any business that offers ongoing services or products, and is widely utilized by technology companies.

Financial Model: Worksheets

The course offers a comprehensive financial model that can be utilized to generate a revenue forecast and develop a financial plan for your business.

Furthermore, a set of completed sample worksheets, mentioned throughout the course, has been included. Please be aware that the password to unprotect the spreadsheets, enabling formula modifications and row insertion, is "Success".

1. Anyone who is running a small business.
2. Anyone who wants to start a business.

1. I'm not graduate from economic bachelor and English is not my mother tongue. But this course and how Mr. Ken explained the content is really easy to understand for beginner like me. Thanks to Mr. Ken for answered all of my question with a fast and easy understandable answer! ~ Diantini S
2. Perfect timing and the insights till now are those that I was exactly looking for.... Excited to learn more ~ Yogen P
3. Such an amazing course. You'll be able to understand and create your own business plan and you'll get a lot of valuable advices ~ A Cerimagic
4. Lot’s of info in this course. Ken really takes you from A to Z . Just what I needed for my business to take off. Thanks ~ Hugo M
5. I'm new to the business world and have been looking for courses with practical guidance. This course definitely provides that and so much more ~ S Slawinski
6. So far so good! A lot of challenges I'm facing in my work place Ken has highlighted the root course, which I was not expecting. He is clear, very engaging and breaks down the jargon. He is straight talking, right down to business attitude. I've just completed the first chapter and he's restoring a little faith in me so quite excited to keep learning (I know, I sound like a nerd) ~ Harrie T
7. This course is the right match for me as I know some about business but believe in always improving. I also want to make sure I have a solid foundation for my business so I'm positioned right for the new year, and growth ~ E Jollymore

1. How can the revenue model be useful beyond the pitch deck?
2. What are potential drivers of revenue?
3. How can I project model if I’m selling product versus a service?
4. What if I offer a variety of price points or billing rates?
5. How should I factor in subscription income, and how do I predict churn?
6. How can I accurately predict growth?
7. How should I take into account new product launches and seasonal fluctuations when predicting growth?

1. Basic knowledge of Excel or Google Sheets. We provide the complete financial model so all you need to do is input your data.
2. A basic understanding of business accounting.