What Are the Consequences of Overestimating Revenue?
Overestimating revenue can have severe repercussions, including:
Cash Flow Issues: Inaccurate revenue projections can lead to insufficient funds to cover operational costs. Investor Relations: Disappointing financial performance may erode investor trust and deter future investments. Operational Strain: Businesses may overextend themselves, leading to inefficiencies and operational challenges. Strategic Errors: Misjudged revenue can impact strategic decisions, including hiring and marketing expenditures.