Michael Newman’s latest é-Wealth Daily’ article is titled “How New Entrepreneurs Can Accurately Project Profits”. [‘e-Wealth Daily’Article]

Michael Newman’s latest ‘e-Wealth Daily’ article:

How New Entrepreneurs Can Accurately Project Profits

If you want to get investors excited, you need to show them how your business will turn a profit. But before you make any sales, you’ll have to know what your start up costs will be.

Projected revenue and profits is the information that’s exciting for both investors and you, but your numbers must be realistic. They have to be founded in solid research and take your market and costs into account.

What you need to do is research who your market is and what they are willing to spend. This can be done by talking to people you’ve identified as your target market and finding out what they would pay for a product like yours. You can also look at what your competition is selling similar products for, as well. Based on the information you’ve obtained, you can set a reasonable price for your product that you can use to project
revenue.

Part of coming up with a good business plan is being able to accurately project costs. When this is done, not only do you have a good idea of what your start-up period will cost you, but you will also be able to attract the interest of investors. When investors see you’ve done research and come up with accurate numbers, they will be more willing to lend to you.

Once you’ve done this research and come up with reasonable sales projections, start evaluating the various costs associated with your business. Operating costs, manufacturing costs, overhead costs and marketing cost all must be considered. Remember, look for options that allow you to provide the quality you want for the price you want to pay.

Once you have the concrete numbers of your fixed costs, subtract them from your sales to get your profits. Remember, you may not experience profits for a while, maybe even for months or a year, so don’t sweat it. This is normal. As long as your business looks like it will be turning a profit in the future, it will be attractive to investors.

e-Wealth Daily

About e-Wealth Daily

The e-Wealth Daily Bulletin brings you daily tips, advice and breaking news related to home businesses, small businesses and internet marketing. Our team of experts gives you the information you need to take your business pursuits to the most profitable level. Founded by Adrian Newman in 2003, the e-Wealth Daily Bulletin and www.ewealthdaily.com are a division of Lombardi Publishing with online newsletters reaching over 100,000 subscribers each month.

* IMNewsWatch would like to thank e-Wealth Daily for granting permission to reprint this article.

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