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How do I project future profits based upon past quarterly returns
HOW DO I DETERMINE A PROJECTION FOR THE FUTURE PROFITABILITY OF A CLIENT BASED UPON THE LAST THREE QUARTERS, AND THE MONTH OF JANUARY 2008?
The second QUARTER of 2007 the client generated $90 The third " " " $225 The fourth " $225 The fourth " " $125 That averaged about $150/month or $600/yr in JANUARY ALONE 2008 " "getting" the value of my services. I don't believe that this is a typical month, but I know that the average quarter will go up. So... what do think I can realistically expect for the next year. And, if you can tell me the equation for figuring this out, maybe I can run the same math for several other new and promising accounts. I need to decide which clients to hold, and which ones to dump! Thank you in advance. I'm a tiny business, but I think I have a real Tiger by the Tail here, and I need help! Sandra |
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What kind of business is it? Is there any seasonality? You need to figure the variables in the sales data. You can use multiple regression but just these three numbers is not going to be enough. If this is the first year, then you may need some detail information, like weekly, monthly sales.
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