Strategy & Governance

How investors and entrepreneurs can play an accurate forecasting game

New research has quantified the size of the gap between the forecast and actual earnings of start-ups presented by entrepreneurs to potential investors. Entrepreneurs typically overestimate realised revenues by about 22 per cent in the estimates provided to potential investors the previous year, says UNSW Business School. In particular, founder-CEOs overshoot revenues by about 15 per cent, […]