With your business plan nearly complete and all your numbers collected together, you will now be in the position to finish off your profit forecast and send your precious document to the printers!
Profit and Loss Forecast
If you found the previous template I linked to a little complicated (or worse) and have not found another to your liking, here's another you can use not only for your cashflow forecast but also for your profit and loss forecast.
Oh, it works in England, Wales and Northern Ireland too, by the way! (Actually, it will work pretty much everywhere.)
You'll see that the P&L, as we call it, is simply a cut down version of the cash flow forecast and acts as a stand alone indicator of the profitability of your business at any given point. By ignoring any cash injections and other support you can see instantly if you are making a profit or not.
Your forecasts need to cover three different scenarios. This is because you are likely to be optimistic about your sales levels (even after your first three months in business).
It is sensible to include a forecast based on sales being significantly slower than you are actually predicting, with sales starting three months later expected. Simply change the first three months to zero.
Next prepare another, forecasting a 20 per cent lower level of sales. To do this, simply multiply your forecast sales by 0.8 but you knew that already, I hope.
As a complete start-up you'll only be able to forecast for a limited period ahead but if you are taking this plan to the bank or somebody else in the hope of gaining finance they will probably want projections for three years ahead at least.
It may seem slightly delusional believing that we can predict what is going to happen in three years, but that's what people in suits like to feel they can do and, if you want their money, you will need to play their game.
Reviewing the Course
Can you believe it's three months ago that you started? Together we have covered a lot of ground and I hope you have managed to keep up with the pace. Remember, in the three months that Spare Time Billionaire took to follow these tasks exactly as you have, the site only turned a profit of around £100.
If you have done better than that, then congratulations to you and do let me know how you did it! If you have not done so well, it may help to print this out and tick off the things you have got covered and mark those that need more work.
#1: Get your home business started
- Thinking about what you want to do with your own website
- How to choose a good name and get it registered
- Finding a hosting service
- Starting out with WordPress and writing copy
#2: Get your site on Google
- Getting your Google account in order for your business
- Using Google tools such as Webmaster and Analytics
- Submitting to search engines including Google, Bing and Yahoo
#3: Start Stacking the Shelves
- Building an e-commerce store using WordPress
- Setting up a payment mechanism for on-line payments
- Getting products and sales pages ready for e-commerce
#4: Promoting your website
- Getting listed in business directories
- Considering advertising on Google or elsewhere
- Promoting your site using video on YouTube
#5: Designing your sales pages
- Setting up your checkout page
- Key elements of an effective sales message
- Building trust with your potential customers
#6: Passive earning is a bonus
- Carrying paid adverts on your pages
- Affiliate networks and how to use them
- Download free bonus book
#7: Attracting the first hundred readers
- Google Analytics versus Statpress Visitors
- Facebook, Twitter, niche forums, StumbleUpon, Reddit, Digg etc.
- Using tools and plugins to push your posts automatically
#8: Building links to your site
- PR Sites and publishing news releases
- Writing for article directories and guest posting
- Tricks to find (and create) niche blogs
#9: Your first AdWords campaign
- Choosing your keywords and advertisement text
- Getting your "landing page" right
- How the Cost Per Click auction really works
#10: Planning your Cash Flow
- Focusing on your profitable ventures
- Revising ambitions to be realistic with resources
- Defining expenses and sales (free download templates)
#11: Formalising your business plan
- Defining your business in conventional terms (free download)
- Turning an adventure into a career
- Checking that you are legal and secure
#12: Ensuring your ongoing success
- Predicting your realistic profit levels
- Reviewing your progress so far
- Planning for growth and development
It has been quite a course, I think you'll agree and I wonder how well you have progressed though all the stages. I know from experience that most of the people who sign up on this course or others like it drop away after just a few lessons.
But now you have all the materials in front of you and what is more a unique opportunity to get some personal help and encouragement by getting in touch with Wick IT Services.
You will be in one of two positions right now: Running a successful internet business or not running a successful internet business. Which one are you?
You enrolled three months ago in the hope of becoming a winner. If you are not there yet, I am here to help. With the Spare Time Billionaire you are either a winner or on your way to becoming a winner.
Planning for Growth
The next step, as you can see is planning for growth and development and I would like you to take the decision to join the growing community of businesses that use Wick IT Services to work with them as they develop their internet businesses.
Even if you do not want to do that, I really would appreciate your feedback on the course, having made your way through all twelve weeks. So, kindly click on the link below and tell me a little about yourself and how you have progressed through the course.
It will only take a few minutes of your time which, you'll agree, being a straight up sort of person, is not much to ask:
All Wick IT Services clients joining up after completing this course will also be offered a discount on products and services and priority service in any promotions so it's worth doing for that.