It ain’t #MoneyMonday, but I am kicking a little free game for my fellow entrepreneurs. I want to share my #BlackFriday P&L Estimates. P&L stands for #Profit & #Loss. You might hear some people refer to this as a #forecast. I suggest all new businesses do this IN ADDITION TO a #budget or fundraising risk assessment. Ultimately, the “actuals” will be different than the “projections”, but it can help ground you in your startup.
This is useful for both nonprofits and for-profit businesses. If I have time this week, I’ll break down the P&L in a recorded video or live. Basically, you add up everything you have to spend money on for the business to operate (#expenses). Then you estimate how much money you expect to make (#revenue). Revenue minus Expenses equals either a profit or loss.
In my case, I am projecting a PROFIT of $845 for Black Friday. This means that I expect my revenue to outweigh my expenses.
If something unexpected happens, that’s called a SHOCK. A shock can be good or bad. If my supplier cancels at the last minute and I have to buy inventory from a more expensive supplier, that will drive up my expenses. Alternatively, if someone donates a display freezer (hint hint) that is an unexpected shock that would reduce my expenses.
Welp. If COVID allows, I will see yall in person soon at the Black Market KY soft opening! For now, here are some great resources for your small business.
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