Financial model

Re: [spiers] Financial model

Year one is to target say $350,000 in revenue based on the wholesale price, at
least 50% gross margins and one should expect 10% profit margins. So 35K$ in
profits at the end of year one.

A basic tenent in starting a business is to make sure it pays a salary or do
not do it. So what is the ball park salary number you have in your model?

Dirk,

This is a big question, because the purpose of the business is to support a
lifestyle, and what income will support that lifestyle is entirely up to you.
next, there is much a small business can legally do vis a vis tax planning and
write-offs that support a given lifestyle, but that is subjective and needs to
be addressed with your CPA.

Also, whatever level you pick to start, expect the biz to grow, as your efforts
to ever improve ever pay off.

Finally, note that 10% is net, that is left over paying yourself off, etc. If
you have 35K left over on $350K in sales, well, you then have a performing
business you OWN, you've had a successful year, paid for much and somewhat
supported yourself... how many salary earners have $35k left over at the end of
the year?

John

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