RESULTS SUMMARY **do not enter any information here**
company overview
COMPANY enter your company name here
INDUSTRY What is your industry?
ELEVATOR PITCH briefly describe what your company does
MARKET PROBLEM identify the overall market problem
COMPANY'S SOLUTION identify how your product or service solves the problem.
WORKING PRODUCT? (yes or no)
enter any other important information here that would affect
OTHER INFORMATION? your company valuation, forecast, etc.
Forecast, market, net and gross profit overview
BLENDED FORECAST FOR ALL REVENUES NET PROFIT GROSS PROFIT
YEAR 1 -$1,304.00 -$104.00
YEAR 2 -$697.60 -$37.60
YEAR 3 -$785.23 -$59.23
3YR blended net and gross profit
$0.00
-$200.00
-$400.00
-$600.00
-$800.00
-$1,000.00
-$1,200.00
-$1,400.00
YEAR 1 YEAR 2 YEAR 3
NET PROFIT GROSS PROFIT
Market size, opportunity and conversion
The current market opportunity represents $100.00 in revenues with an approximate growth of 10% over the next three years representing $136
In this market, customers pay an average of $10.00 for a similar product or service on an average of 12 times a year.
The industry average customer purchase sales cycle is 6 months and the company's is expected to be 7.333333 months, blended across all revenues for the first year
Forecast, profit and loss statements
YEAR 1
The first year topline sales are expected to be $8.00 and the resulting gross profit is expected to be -$52.00 with a net profit of -$652.00
The company expects to acquire 26 customers who each pay an average of $8.00 for the combined products or services.
The average combined sales cycle (all revenues) is 7.33333333 months. The company has had revenues for 0 months.
ASSUMPTIONS REVENUE ITEM #1 ASSUMPTIONS REVENUE ITEM #2 ASSUMPTIONS REVENUE ITEM #3
# of customers # cust assumption 0 0
average sale amount avg sale customer 0 0
cost of sales cost of sales 0 0
non sales expenses non sales expenses 0 0
sales cycle (mos) 6 1 1
YEAR 2
Year two topline sales are expected to grow to $74.40 with a blended gross profit expected to be -$37.60 and a blended net profit totallihng -$697.60
Across all revenue lines, we expect to acquire 42 customers who pay a blended average of $8.60 each for the product or service.
The average combined sales cycle (for all revenues) is 3 month(s).
ASSUMPTIONS REVENUE ITEM #1 ASSUMPTIONS REVENUE ITEM #2 ASSUMPTIONS REVENUE ITEM #3
# of customers yr 2 assumption here yr 2 assumption here yr 2 assumption here
average sale amount 0 0 0
cost of sales 0 0 0
non sales expenses 0 0 0
sales cycle (mos) 1 0 0
YEAR 3
By year 3, topline cummulative sales are expected to total $13.37 with a blended gross profit expected to be -$59.23 and a blended net profit totalling -$785.23
Across all revenue lines, we expect to have a total of 3 customers who pay a blended average of $8.60 each for our products or services.
The average combined sales cycle (all revenues) is 1.33333333 month(s).
ASSUMPTIONS REVENUE ITEM #1 ASSUMPTIONS REVENUE ITEM #2 ASSUMPTIONS REVENUE ITEM #3
# of customers 3 yr assump 3yr asssumption 3yr assmp
average sale amount 0 0 0
cost of sales 0 0 0
non sales expenses 0 0 0
sales cycle (mos) 1 0 1
COMPANY INFORMATION
Company Name enter your company name here
Industry What is your industry?
elevator pitch briefly describe what your company does
What is the market problem? identify the overall market problem
How does your solution address it? identify how your product or service solves the problem.
Do you have current revenues? (y/n) no
If yes, for how many months?
Do you have a working product? (y/n) (yes or no)
enter any other important information here that would affect your company
Other information? valuation, forecast, etc.
MARKET OPPORTUNITY WORKSHEET
Use this worksheet to determine a reasonable price for your current or future product or service, based on what the market will bear.
You can also see your planning results below which will give you a sense of believability. This is the basis for any sales forecast.
ADDRESSABLE MARKET
what is the current market size? (in dollars) $100.00
what % of customers use a similar product or service now? 10%
what is the market growth expected to be over the next 3 years? (%) 10%
what is the average purchase price for the service? $10.00
how many times a year do customers by the product or service? 12
What is the average sales cycle per customer for each purchase (in months)? 6
What % of the total market do you think will use your solution? 50%
IF you believe the following statements are true, use the additional information below to start your revenue forecast.
In this market, current combined annual revenues reflect a total of $20.00 for a similar service or product which takes into consideration frequency of purchase
and an industry average sales cycle of approximately 6 months. Customers buy the solution 12 times a year on average.
You believe the number of customers that will use your solution is 10 which is an annual revenue of $1 in topline sales.
YEAR ONE FORECAST PLANNING RESULTS
total available revenue in this market now $10.00
average number of customers in the market (annual) 20
average annual revenue within 3 years (due to market growth) $36.00
average number of customers over 3 years, with that growth 720
total revenue you expect in year 1 $1.00
number of customers you expect in year 1 10
3 YR REVENUE FORECAST If you have historical revenues, enter them here. If not, use similar revenues from the market worksheet. Be sure to enter your assumption for ea
FILL IN ONLY THE GRAY AREAS
YEAR 1 DATA
Revenue Item #1
Average sales cycle? (in months) 6
month 1 month 2 month 3 month 4 month 5 month 6 month 7 month 8 month 9
number of customers 1 1 1 1 1 1 1 1 1
average sale amount per customer 1 1 1 1 1 1
total cost of sales $10 $10 $10 $10 $10 $10
Non sales expenses $100 $100 $100 $100 $100 $100
gross profit -$9 -$9 -$9 -$9 -$9 -$9
net profit -$109.00 -$109.00 -$109.00 -$109.00 -$109.00 -$109.00
Revenue Item #2
Average sales cycle? (in months) 1
month 1 month 2 month 3 month 4 month 5 month 6 month 7 month 8 month 9
number of customers 1 1 1 1 1 1 1 1 1
average sale amount per customer 0 0 1 1 0 0
total cost of sales $0 $0 $0 $0 $0 $0
Non sales expenses $0 $0 $0 $0 $0 $0
gross profit $0 $0 $1 $1 $0 $0
net profit $0.00 $0.00 $1.00 $1.00 $0.00 $0.00
Revenue Item #3
Average sales cycle? (in months) 1
month 1 month 2 month 3 month 4 month 5 month 6 month 7 month 8 month 9
number of customers 1 1 1 1 1 1 1 1 1
average sale amount per customer 0 0 0
total cost of sales $0 $0 $0 $0
Non sales expenses $0
gross profit $0 $0 $0 $0 $0 $0
net profit $0.00 $0.00 $0.00 $0.00 $0.00 $0.00
Blended Gross Profit -$9.00 -$9.00 -$8.00 -$8.00 -$9.00 -$9.00
Blended Net Profit -$109.00 -$109.00 -$108.00 -$108.00 -$109.00 -$109.00
BLENDED FORECAST RESULTS NET GROSS
Year 1 -$1,304.00 -$104.00
Year 2 -$697.60 -$37.60
Year 3 -$785.23 -$59.23
your assumption for each line.
YEAR 2
REVENUE 1
1
month 10 month 11 month 12 1 year total revenue #1 assumptions total rev1 revenue #1 assumptions
1 1 1 2 # cust assumption 100% 4 yr 2 assumption here
$6 avg sale customer 10% $7
$60 cost of sales 10% $66
$600 non sales expenses 10% $660
-$54 -$40
-$654.00 -$699.60
REVENUE 2
0
month 10 month 11 month 12 1 year total revenue #2 assumptions total rev2 revenue #2 assumptions
1 1 1 12 100% 24 yr 2 assumption here
$2 0% $2
$0 0% $0
$0 0% $0
$2.00 $2
$2.00 $2
REVENUE 3
6
month 10 month 11 month 12 1 year total revenue #3 assumptions total rev3 revenue #3 assumptions
1 1 1 12 100% 14 yr 2 assumption here
$0 0% $0
$0 0% $0
$0 0% $0
$0.00 $0
$0.00 $0.00
-$52.00 -$37.60
-$652.00 -$697.60
YEAR 3 3 YR cummulative RESULTS
REVENUE 1
1
total rev1 revenue #1 assumptions REVENUE ITEM 1
100% 2 3 yr assump 8
0% $7 $19
10% $73 $199
10% $726 $1,986
-$59
-$785.40
REVENUE 2
12
total rev2 revenue #2 assumptions REVENUE ITEM 2
0% 0 3yr asssumption 36
0% $2 $6
0% $0 $0
0% $0 $0
$0
$0.17
REVENUE 3
1
total rev3 revenue #3 assumptions REVENUE ITEM 3
0% 1 3yr assmp 27
0% 0 $0
0% $0 $0
0% $0 $0
$0
$0.00
-$59.23 -$148.83
-$785.23 -$2,134.83
HELPFUL TIPS, DEFINITIONS AND INFORMATION
These are all the costs that are involved in buying and selling your product or service -- they can be hard goods, or soft
cost of sales (COGS) goods. This does not include sales staff, but the actual solution or product itself.
These are all the other expenses including utilities, internet, sales staff, accounting, etc. It also includes items like rent,
non-sales expenses subscriptions, etc.
This is the possible size of the market where your product or service fits in. Often research will estimate the market size
based either on actual data, or trends. Either are a viable number to use for your forecast, as long as you have data to
support what most people indicate is a median number (take the low estimate, take the high estimate, and use something
current market size in the middle).
Either based on research of actual data or trends in the market, this is the general percent of people that use a similar
product or service to yours. This is important for creating a believable data point that will ultimately drive your forecast and
% of customers using the product or service valuation data.
These are total dollars you bring in. If you have current revenues, enter them in the revenue forecast worksheet. Enter as
revenues many months revenue up to 12 months that you have.
Year 2 and 3 forecasts are calculated by percent of growth. So, if in year one, you have 5 customers and you think year 2
will increase to 10 customers, enter 100% in the number of customers. Similarly for all the data fields, enter the
year 2 and year 3 forecast anticipated percent of growth.
Where indicated, enter the assumption next to the data you enter. For example, if in year 1 you indicate you will get 6
customers, state the reason why you believe so. This is important data in looking at the entire forecast, and how
Assumptions believable it is.
INSTRUCTIONS
1 You will fill in only the gray areas in this spreadsheet All the other calculations are done for you.
2 Input the data in the order of worksheets shown here. Each is designed to help you identify your market, reasonable forecasts and ultimately your business overview
1) company information 2) market opportunity and 3) revenue forecast
3 DO NOT enter any information in the summary worksheet-- all of the information you entered previously will automatically generate a total forecast and market overview
4 View the comments alongside any item (it shows as a red arrow). Simply hover over with your mouse to get relevant information for that item
TIPS
1 Use market data when available. If you have statistics based on research for your market size, or number of customers or average revenues, use those. Keep in mind
you should use a "similar" product or service. This lends credibility to your anticipated revenue forecast and customer acquistion numbers.
2 As you fill in the data for each worksheet, you will see the calculations based on your input data. You can continue to change any of these numbers to get an overall
view based on your business objectives. If the numbers aren't looking good, continue to readjust them realistically until they do. It's the best exercise in determining
your company's solution and overall value within the marketplace, as well as the believability of your forecast.
3 If you don't find exact or similar competitive data, you'll need to use your best judgement for any given data point. In all cases where it counts, you will also enter your primary
assumption as it relates to that data point. These assumptions are the framework of 'believability' behind your solution whether you are adding value to an existing
market, or building a new one. The assumptions are an important factor in understanding the value of your business, the leverage you have, and how you will grow your
business, customers and revenues.
4 For a standard list of definitions to help you with data input, see the 'definitions glossary' sheet
5 The results summary sheet is an overview of your forecast, your business, and the general market. It also includes your assumptions. You can print this report for management or
for your own purpose.
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Send your feedback to isnazzmedia@gmail.com We look forward to hearing from you!
1
0
0 0
with a blended gross profit expected to be -$59.23 and a blended net profit totalling
customers who pay a blended average of $8.60 each for our products or services.
month(s).
ASSUMPTIONS REVENUE ITEM #2 ASSUMPTIONS REVENUE ITEM #3
3yr asssumption 3yr assmp
0 0
0 0
0 0
0 1
$136
evenues for the first year
-$652.00
-$697.60
-$785.23