Run rate specifically measures how much revenue your business generates during a specific time period. In other words, it is the financial performance of your business, based on your current revenue.
This makes it one of the most insightful and significant sales metrics
to track. Based on it, you can calculate your forecast: it provides an idea of how much money you need to be making to meet the quota as it estimates how much money you're bringing in.
By discovering your run rate, you can adjust your sales process
to meet your goals.
This is all, of course, assuming that current conditions will continue.
They are most useful for short-term calculations and course corrections for certain departments or newer companies, or when there is a big change in business processes.