Testing
Your Idea Worksheet #2
Profitability Projections
Projected Revenue
How
many customers do you believe will buy your products or services in
the first six months of your business? How much will each customer
purchase during the first six months?
How much will you charge
them for the product or service in the first six months? Based on
the price you have decided and the amount you believe customers will
purchase, how much revenue will the company receive in the first six
months?
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Total
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No. of Customers
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Amt. per customer
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Price for product/service
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Projected Revenue
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Projected Expenses
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Project Net Profit
(Loss)
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Projected Expenses
How will the first six
months of revenue compare to your projected expenses? Will you make
money? Will you break even? Use the chart below to estimated project
expenses.
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Month
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Total
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Controllable Expenses
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Salaries/wages
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Payroll taxes
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Legal/Accounting
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Advertising
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Automobile
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Office Supplies
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Dues/Subscriptions
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Telephone
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Utilities
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Miscellaneous
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Other
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Fixed Expenses
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Rent
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Depreciation
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Insurance
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Licenses/Permits
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Taxes
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Loan Payments
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TOTAL
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Now that you have projected
the revenue for the first six months, do the same for the first 12
months and the first three years. Compare these revenue figures to
your projected costs for the same time periods.
Sales Goals
Set sales goals for the
first six months, year and three years of your business. Determine
the specific tactics you will use to accomplish these goals and what
you will do to measure your progress.
Example: Wheels
Bike Shop
Six month goal: Sell
50 bikes, average price $100 resulting in $5,000 in sales revenue.
a. Place fliers
announcing the business in schools and colleges, with a coupon for
a free T-shirt with each purchase.
b. Advertise in the
printed program during the community's annual bike race.
Measurement: Keep track
of what percentage of sales come from the coupons and the ad.
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Month
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Total
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No. Sold
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Average Price
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Sales Revenue
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What tactics will you use
to reach your sales goals?
1.
2.
3.
4.
5.
6.
7.
8.
How will you measure the
success of the tactics?
1.
2.
3.
4.
5.
6.
7.
8.
Do your sales goals, tactics
list and measurement plans for a one-year period and a three-year
period. Compare your sales goals with projected expenses for each
time period.
