Answer the following four questions about your business. A few sentences for each is sufficient.
1) Why are you doing this?
2) What services do you offer?
3) What price do you charge?
4) What expenses do you have?
Part 2: Finances (6 marks)
Complete the Pricing and Cash Flow Tools shared by Lisa Zamparo in this week’s lecture.
1) What numbers did you input for hours per week, weeks of vacation and goal annual sales? (1 mark)
Hours per week:
Weeks of vacation:
Goal annual sales:
2) Provide some context for these numbers. For example, perhaps you only want to work 20 hours per week as your new business is a part time job for supplementary income. Or maybe you are OK working 60 hours per week because this is a good time in your life to prioritize your career. (2 marks)
3) Use the results from the Capacity and Pricing worksheet in the profit and loss calculator to determine the following: (2 marks)
Operating Expenses:
Owner Compensation:
Taxes:
Profit:
4) Use the Wealth Simple Calculator linked in the excel file to determine your estimated taxes owing: (1 mark)
Estimated Taxes Owing:
Part 3: Time Study (6 marks)
The capacity calculator recommends splitting your time as follows: 50% client service, 30% business development, 20% admin.
1) In your business, how will you spend your business development time?
Sample Solution