- Discounts & Deductions
= Net Revenue
- Cost of Goods Sold
= Gross Income or `Gross Margin` or `Gross Profit`
=Net Profit After Taxes
MacRP6/1/2009 3:29 PM
What I am really looking for is list of the financials one would generally use and the order that one would generally find them out and how to find each one out.
Searching and I find individual topics (profit margin) and such. But I am looking for the overall picture and flow.
I have my BP about 80% done. I am to the point of all the profits, rev, margins, etc. My business will be an online sales. I will sell ~5% of product @ ~$4 per item, ~20% ~$14, and 5% ~$50.
I have figured my yearly volume at an avg selling price is $6.
Say $5,000,000 in revenue.
24% mark up.
Cool. Well, with some help from here, and 20 hours of massaging excel data and smoothing it out I think I have come to a realistic place and was FINALLY able to complete my Exp/Rev spread sheets for my Battle, er.... Business Plan.
Now to finish up the last 1/3 of my business plan. Arrrrrrrrgg!
Then to a lawyer for help with NDA`s for individuals and Corps. I have a really good one pager NDA but I have to make sure I cover my needs 100%.
Then it is Investor Time.
And then, right before I start my business, the world will probably end or something. gahhh!
Thanks and Peace and Blessings
Excellent help there and much appreciated. I will be taking stock from a significant number of business partners. But low volume to start. The first year will just be 3 months of sales/shipping action, maybe a little more, before we start advertising and such. But it is going to explode after that.
So you painted a picture of how many employees but I am not sure of your product.
My sales will be an average of 2 to 5 12 oz to 20 oz items per order. So 2500 or so items per week for the final 3 months of year 1 divided by an average of 3 products per order would be ~835 shipments per day.
I am guessing 3 people for this. 1 to receive and come over and help ship at a later hour. 2 @ about 265 packages per day.
3 items average
~88 seconds work flow (get box, get 3 items, inspect-box-seal, label-inspect, to holding, loading)
I am looking at about 6.5 work hours out of a warehouse employee per day or 23,400 seconds. I am trying to leave a buffer in there. So ~265 packages per day per emp. And then with experience, better placement, improved work flow, etc. I can get that boosted up. But I want to be careful in fulfilling order to start. That is my main priority. Happy customers.
I could contract this out. I am a bit of a control freak. But if the cost savings were there??? But I could not do that to start. I would want to learn it some so that should we ever need to take it back over, etc. Also, this could become a colossal shipping situation. I mean, if everything goes well it will have no choice but to. And it could be a bit of breakables so I want to keep that under control as well.
But that is why I am doggedly putting the Business Plan together so that I can get the investors. Been a lot of fun thus far!
Kind regards, and thanks.
Peace and Blessings
Please, I am wondering how many warehouse employees I will need for my business.
I will be shipping in year /week:
Y1 ~2.3k items
These will average say 5 items with a generic size of say a 12 oz. can of soda.
How many loose items from different pallets/shelves can an employee box and ship out per day? I am thinking to start, and as we get better at shipping, and as we improve shipping processes, improve equipment over time, etc.
What I am thinking is:
Y1 ~500/day/emp Base with limited tools, lines, what ever.
Y2 ~750 Improved tools like battery carts, basic lines.
Y3 ~1000 Significantly improved process, tools.
Y4 ~1200 Work it.
Y5 ~1700 Improved and more tools, more automation, etc.
Note: Yr 1 will only be about 3 months of sales and will provide some learning and improving time. Yr 2 will significantly grow.
Who ever does some decent sized shipping I would love to know how much you do per week. Like avg products per box shipped.
Also, wondering how much a year 2 and year 5 upgrade in process and tools and such might cost. Nebulous I know :)
Peace and Blessings