LivePlan gives you four ways to forecast revenue streams. You'll choose the type when you set up a revenue stream by clicking the appropriate button:
We briefly describe each type of revenue stream below. You can choose any of these four primary forecasting models for any revenue stream in your plan.
- Unit sales: Choose this option if you want to enter the number of units you expect to sell, along with the price for each, and LivePlan will calculate the totals. Retail, manufacturing, and real estate are some industries that often use unit sales revenue streams.
- Billable hours: Choose this option if your revenue stream is based on per-hour pricing. This is common for professional services across many industries.
- Recurring charges: Use our subscription model to calculate the recurring revenue based on new signups, renewals, and cancelations. Software subscriptions and fitness clubs are a couple of examples of recurring charges.
- Revenue only: With this flexible option, you can calculate the revenue on your own and enter only the totals. Choose this option if you already have a more detailed forecast of your own or need to follow an industry-specific forecasting model. Revenue only also includes scenarios when a source of revenue is based on and scaled from another source of revenue.
A LivePlan forecast is between one and five years in length and can have up to three years of monthly detail. The forecast options menu contains these and other forecast settings.
If you need help deciding which revenue streams to add, the LivePlan Assistant can suggest revenue entries based on your company description.
For more information on LivePlan Assistant please see this article.