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Putting Profit First…

Strategy – Bonus Video & Calculator

Use Our Profit Calculator To Discover Your Required Sales Revenue

Using four simple steps, you can calculate your required sales revenue based on your desired profit **Important** Figures are excluding VAT

STEP 1 = Decide how much profit you want the business to make & therefore how much you want to earn. Remember, I encourage you to leave 1/3 to 1/2 of the profits in the company for cashflow/contingency, especially if you want to continue growing it

STEP 2 = Enter the total for your Expenses. If you don’t know these, click here to download an Expense Calculator

STEP 3 = Enter your cost of goods sold as a percentage of your total sales revenue figure. If you know your gross profit percentage simple minus from 100 (ie. GP = 30% – COGS = 70%)

STEP 4 = This is your sales target, to achieve your desired profits/earnings, based on your current business model, see assumptions below

Assumptions

  • Your current overheads or expenses can deliver this volume of sales
  • COGS stays constant as sales revenue changes
  • Corporation tax rate = 18 for year 1st April 2020 – you can adjust the rate as required
  • Figures are excluding VAT
  • Also look at opportunities to reduce expenses as these will have an instant effect on Profit

Assumptions

  • Your current overheads or expenses can deliver this volume of sales
  • COGS stays constant as sales revenue changes
  • Corporation tax rate = 18 for year 1st April 2020 – you can adjust the rate as required
  • Figures are excluding VAT
  • Also look at opportunities to reduce expenses as these will have an instant effect on Profit