5 Step Venture eMentoring Program™
Module 4i: Profit / Loss Forecast
What are your financial estimates for the first 12 months of operation including expenses, income, profit, taxes, income after taxes, and other money income from sources other than business (i.e., Social Security, spouse's wages, retirement pensions, etc.)
In forecasting your businesses potential, it is critical to distinguish between what you hope will happen, and what you expect will happen. We are usually quite optimistic when we think about our businesses potential, and are reluctant to accept that this is the "best of all possible worlds" expectation and reality may be considerable lower. It is very important to be as realistic as possible in developing these expectations or forecasts of your businesses potential, because you are making important decisions about the investment of your own time and money. Others such as family members may be involved as well.
If you've completed Step 3b: Revenue Expense Worksheet during this session, you completed a series of exercises that allowed you to develop a 12 month forecast. Many of the following fields will be populated with your answers from that form. If you've completed Step 3b at another time, you should have an email record of the results. You may enter the data from that email below or return to step 3b.
For "Taxes", have our accounting professional help you with that estimate or enter 0(zero). For "Other Income", list income from any other sources such as social security, spouses wages, etc. This also is a good time to discuss these results with your counselor or mentor. Once again, the process of discussing these ideas helps to see whether or not they make sense.