West Virginia
Train myBiz

5 Step Venture eMentoring Program™

Session 3: Cost & Income Forecasting

Module 3b: Revenue Expense Worksheet

Now that you have listed your sources of revenue and the various expenses you expect to encounter, you can divide them into categories by using the following worksheets

Instructions: List the various sources of revenue you expect to earn, and the expense categories you are likely to incur. Then, divide the expenses into the Variable Expense and Fixed Expense categories. These items will become part of your Forecasting Worksheet and further refined later in this session. Once again, discuss these ideas with your mentor or counselor to gain perspective and improve your ideas.

Enter 0 for any items that do not apply. Items that already have a 0 will calculate automatically.

You can use the Calculate button at the end to see your totals. You can experiment with different Revenue/Cost combinations by replacing any of your original numbers and clicking the Calculate botton again.

Revenue Forecast

 Whirligig Revenue Forecast Unit Price \$25 Units Sold 21 Total Revenue \$525
 Your Revenue Forecast Unit Price \$ Units Sold Total Revenue \$0.00

Expenses Divided into Variable and Fixed

Variable Expenses

 Whirligig Bill of Materials Material \$9.80 Paint \$2.25 Sandpaper \$1.00 Bolts and Washers \$.80 Support Rod \$1.15 Total Expenses \$15.00
 Your Bill of Materials (Variable Expense) \$ \$ \$ \$ \$ Total Variable Expenses (Unit Cost) \$0.00

Gross Profit

The Gross Profit is the amount remaining after you subtract the total Variable Expenses from the Revenues. In other words, have you priced your product / service to sell for at least more than it costs you to provide it? The Gross Margin is the percentage that the Gross Profit represents as a part of the Revenue. Both the Gross Profit and the Gross Margin are referred to as "profitability" measures. Calculate your Gross Profit below by subtracting your Variable Expenses from your Revenues. Calculate your Gross Margin by dividing the Gross Profit by the Revenues.

 Whirligig Gross Profit a. Unit Price \$25 b. Unit Cost \$15 Sandpaper \$1.00 c. Gross Profit (a-b) \$10 d. Gross Margin (c/a) 40%
 Your Gross Profit Data in this form is from the two exercises above a. Unit Price \$0.00 b. Unit Cost \$0.00 c. Gross Profit (a-b) \$0.00 d. Gross Margin (c/a) 0.00%

Fixed Expenses

Now you can calculate your Fixed Expenses. For a part-time home based business you may not have any Fixed Expenses. If you do have any Fixed Expenses, this will cause you to think about your Breakeven in the next section.

 Whirligig Fixed Expenses Rent \$100 Web Hosting \$27 Telephone \$33 Total Fixed Expenses \$160
 Your Fixed Expenses \$ \$ \$ \$ \$ Total Fixed Expenses \$0.00

The following form will show you an Annual forecast based on your answers above. You can experiment by changing your answers to see how the results are affected.

 Annual Forecast Revenue \$0.00 Variable Expenses \$0.00 Gross Profit \$0.00 Fixed Expenses \$0.00 Net Profit (Loss) \$0.00

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