Introduction
We have prepared assistance for you in answering questions to help formulate a financial model/profit and loss plan. Expert Daniil Khanin, SEO and founder of UECalc, helps answer the question. Below you will find 11 videos and transcripts that will help you answer the questions.
1. How many leads (potential customers) do you anticipate acquiring in the first month?
Please provide the anticipated average number of potential clients you plan to acquire during the first month following the launch of your product. If you have a business to business product this refers to the number of companies you will try to establish connections with. In B2C this is the total count of individuals who will become aware of the existence of your product. And if you have a mobile application this refers to the number of installations of your mobile app.
2. What is your projected marketing investment to attract these leads in the first month?
Provide details of the marketing expenses that you anticipate incurring in order to acquire this particular number of potential customers for your business. These could potentially be your advertising expenses that have been spent on business to consumer or mobile applications or the expenses that are related to the work of your sales department in the business to business sectors.
3. How many of these leads are likely to buy your product (convert to customers)?
Please specify the total number of clients that you anticipate being able to obtain from this group of potential clients during the first month of sales. For example, if you were able to acquire 1000 potential clients and out of them 10 became your actual clients, then that’s the number 10 you need to specify.
4. What’s the price of your product? If there are various prices, what’s the average cost or average check?
Please provide the average selling price at which your product is typically sold. This could be simply the average price of the goods if you have multiple products or the price distribution if you have subscribed tariffs. Simply choose some averaging and indicate the average price at which your goods will be purchased.
5. How many times will one customer, attracted by you in the first month, purchase your product over the entire time they remain your customer?
Specify the average projected or expected number of payments you will receive from one customer. For example, you sell a product on subscription and expect one customer to pay you for the product over 18 months. Here, the number 18 is indeed the average number of payments you will receive from one customer.
6. What is your cost of goods sold per transaction?
Cost of goods sold represents the cost of goods or services that you provide or sell to customers. When it comes to goods, it’s very simple here. This is the price at which you bought the item you are selling. For services, expenses accrued at the time of the transaction are typically utilized. Frequently, these expenses often involve acquiring our expenses on banking services in most cases.
7. What is the expected salary for the CEO/founder with a full-time commitment?
Please provide the salary details for your General Director or CEO, assuming that you are hiring them. This information is of utmost importance for ensuring accurate financial modelling and making informed decisions.
8. How many employees you’re going to have?
Indicate the total count of employees you intend to have in your company excluding search engine optimization.
9. What’s the average salary you anticipate for your employees?
Specify the average salary of one particular employee. Let’s assume that you have a total of 10 employees in your company and the monthly payroll expenses amount to $50,000. Therefore, the average salary of one employee can be calculated as $5,000.
10. What one-time investments are you planning to undertake at the start?
Please provide details of the specific one-time expenses that your company will incur for the purpose of launching this business at the time of its establishment.
11. What are your other ongoing expenses per month you expect? (like fixed costs, office rent, internet, services, etc.)?
Please provide details of your typical expenses that you anticipate incurring once your business is up and running. This is the cost of rent, these are the expenses for maintaining your team, such as the cost for internet, phone expenses and so on.
Conclusion
In conclusion, this ultimate guide supplemented with the insights from Daniil Khanin of UECalc will allow you to understand the key principles of creating a sound financial model and a profit and loss plan for your business. It will help you learn everything about how to approach financial planning in your business from the estimated cost of acquiring the first customer to the estimated costs you are likely to incurr in the future. By posing these questions, you will be in a position to effectively plan and manage your business with a view of achieving profitability and growth. It is crucial to understand that, while building a business, it is crucial to be aware of your financial position and be able to change it based on the new information that comes with the development of your industry.
