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    3 Replies Latest reply on Feb 2, 2010 6:41 PM by DomainDiva

    Writing business plan - How do I project possible income?

    aloha10 Newbie
      I am at the tail end of completing a very extensive business plan for a skilled labor industry. My brain is hurting right now, and I need help!

      How do I project Revenue in Sales for a service I have not performed yet? I have no idea as to how much business we will generate every month, and not sure as to the size of each project either. I know what I need to aim for in regards to my break-even analysis, but in terms of the 12 month PNL statement, I do not even know where to begin. HELP!

      Do I base it off the Market Analysis I did researching what my one competitor in the area is charging? I have no idea what kind of business he does every month and know he will not share that with me either.

      I guess another thing I could do is start advertising and getting a general idea as to the interest and possible income but that seems a bit premature, since I am still looking for investors.

      Thanks in advance for your consideration and advice!
        • Re: Writing business plan - How do I project possible income?
          Rest.Lee Wayfarer

          Try to broaden your research outside your area. Try talking to competitors in your city or county. Call your local association or state commerce dept and see if they have any data on that skilled labor industry.

          You can also google a couple of phrases to brainstorm for ideas of how to approach it.

          For example: "sheet metal workers in California" "California and sheet metal"

           


          See what comes up and then go from there.

           


          Hope this helps and good luck,

           


          Lee
          • Re: Writing business plan - How do I project possible income?
            BizOptimizer Adventurer
            It is hard to imagine that you have done an adequate industry analysis if you don't know what they charge or their volume. These are basics that you need to have before you can even create a sales/marketing plan. It is the crux to much of the business plan.

            You can do D&B (Dunn & Bradstreet) or other business info collector on your future competitors. You can look at the "standard industry ratio" books in Libraries or buy one to see where most businesses are and what they spend on what.

            See if there are any Franchisers that do it and see what they say. Look up annual reports on any public companies that do what you do.

            Hopefully you are beginning to see you aren't almost done, but almost about to start with good information. But one that will be easier to do, as you have a better understanding of the foundation information - which is the REAL reason you go through a business plan to start with.

            Good luck
            • Re: Writing business plan - How do I project possible income?
              DomainDiva Ranger
              A financial plan has several purposes:

              1. To show that you understand your business model, you understand how your model generates revenue.

              2. To show how much money your business model will generate.

              Ask yourself how much YOU alone could sell. That's your conservative estimate. Numbers with just you working the business.
              Ask yourself how much could be sold if you gained additional revenue and had two salespeople working full time for you. Numbers you can meet if you gain additional funding/loans.

              3. To show how you anticipate expenses after revenue and how you budget your money.