Comments on: Step 3: Forecasting Income, Expenses and Profits

By: Rob Northrup

Rob Northrup — Tue, 04 Nov 2008 14:25:15 +0000

Sam,
Good question. I think the reason that Marketing Expenses are underestimated is because most people who aren’t already in businesss assume that the customers will find them if they just have a great product. “The Better Mousetrap Theory”. Build a better mousetrap and the world will beat a path to your door.

This is wrong, and even those with a real Better Mousetrap need to 1) tell people about said Mousetrap. and 2) convince them that it is really better and 3) get them to take action and buy said Better Mousetrap. All these things take money.

Hope you keep reading.
Rob

By: Sam

Sam — Tue, 04 Nov 2008 07:15:31 +0000

Very true that marketing budgets are often underestimated and overlooked. I have found this with many clients that I have worked with when I had a design business a few years back. What do you think the reason for companies overlooking this marketing budget would be Rob? Sam from Residual Income Business Opportunity Blog.

By: April Braswell

April Braswell — Tue, 28 Oct 2008 19:17:57 +0000

GREAT information, Rob. and BTW, I LOVE excel. have an acctg/fin analyst background. used to practically program within it. I LOVE doing that because you can set up your assumption and whatIF scenarios and just plug in some numbers to do reality checks.

and it is GREAT for making decisions, even romantic partner decisions. One can CARE FOR another (affection) and yet then figure out (at least generally if not super precisely) that this person, while a lovely human being, is not a GOOD LIFE PARTNER choice.

Even the soft stuff can be approximately quantified.

All the best,

April Braswell

Online Dating Expert, Romantic Relationship Coach, Romance Coaching

Online Dating Sites Review, Internet Dating Sites Guide

By: Cindy Eyanson

Cindy Eyanson — Sun, 26 Oct 2008 07:59:30 +0000

Great post! Tons of data! Loved it and learned alot Cindy Cindy Eyanson Online

By: Sheridan

Sheridan — Sat, 25 Oct 2008 18:19:27 +0000

Not only do people often underestimate $,assuming they're even estimating at all, they underestimate the amount of sweat equity required. And they often throw good dollars after bad into the marketing abyss.

By: David J. Parnell

David J. Parnell — Sat, 25 Oct 2008 14:56:15 +0000

Rob, Go and thorough communication of very valuable information. These are things that most small businesses don't even consider before start up... David J. Parnell | Communication Expert The Effective Communication Blog

By: Scott A Bell

Scott A Bell — Sat, 25 Oct 2008 10:12:14 +0000

thanks for the great information Rob.

Scott Bell

The Road Warrior

http://www.scottalexanderbell.com

By: Michael Roth

Michael Roth — Sat, 25 Oct 2008 03:16:10 +0000

Rob,great detailed post. Very helpful. thanks,Michael http://www.drmichaelroth.com

By: Rob Northrup

Rob Northrup — Sat, 25 Oct 2008 02:14:40 +0000

John,

I am teaching a class, it just happens to be in blog form…

Rob

By: Rob Northrup

Rob Northrup — Sat, 25 Oct 2008 02:13:50 +0000

Lena, Glad to hear that you are getting value, let me know if you have any questions…
This is intended to help people who aren’t used to this sort of thing…
Rob

By: Rob Northrup

Rob Northrup — Sat, 25 Oct 2008 02:12:46 +0000

A nation of moochers is what we are becoming…
Rob

By: Rob Northrup

Rob Northrup — Sat, 25 Oct 2008 02:11:36 +0000

Jenn,
Glad you are getting value from them…
Rob

By: Rob Northrup

Rob Northrup — Sat, 25 Oct 2008 02:10:53 +0000

Accurate Thinking is the word Napoleon Hill used to describe this sort of no-nonsense analysis. You can’t improve what you can’t measure.

Thanks for reading and commenting,

Rob

By: Rob Northrup

Rob Northrup — Sat, 25 Oct 2008 02:09:39 +0000

Hi Lisa aka BHM,

Keeping the overhead low and the length of commitments low is a smart move in the beginning, so is keeping a low inventory, and creating on demand… Your friend sounds like she’s doing good. Tell her to email me if she has any particular questions and I’ll try to help. That goes for anyone reading this blog.

email is rob@corporatebasecamp.com

Rob

By: Rob Northrup

Rob Northrup — Sat, 25 Oct 2008 02:06:57 +0000

Hope is not a strategy, just like change is not a destination…
Rob

By: Rob Northrup

Rob Northrup — Sat, 25 Oct 2008 02:04:44 +0000

LOL, that is step eight! Thanks for the comment, spreadsheets rock!
Rob

By: Intuitive John

Intuitive John — Fri, 24 Oct 2008 22:53:37 +0000

Practical…easy to follow business advice. I found my stress going down as I read the post…and was mentally filling in the numbers.

You could teach a class on this.

By: Lena

Lena — Fri, 24 Oct 2008 19:47:21 +0000

Hi Rob I have Kevin's ebooks printed out...and now I'm printing out your some of your posts as well milukh.com body language blog

By: Robert Kaufer

Robert Kaufer — Fri, 24 Oct 2008 17:31:17 +0000

Rob, Pretty simple math, can you send this to the president. Bob K Learn How to Be A Do It Yourself Lawyer

By: Jennifer Skinner

Jennifer Skinner — Fri, 24 Oct 2008 16:48:41 +0000

This series of posts you are doing is so exceptionally helpful. The math isn't complicated, but the figuring is so often neglected. Thank you! Jennifer Skinner Wardrobe Planning Expert

By: Matthew Shields

Matthew Shields — Fri, 24 Oct 2008 16:20:50 +0000

Hi , Rob Great post for explaining how to break the cost down. So many do not truly understand all of the full extent of the costs associated with their business. Thank you for the detailed post Happy Trails Matthew Shields Hotel Resort Energy Management Anything Solar

By: Lisa McLellan

Lisa McLellan — Fri, 24 Oct 2008 15:14:40 +0000

This is a great post. I have a friend who makes jewelry and gift items. She wanted to open a store because her house was getting overloaded with the stuff. So she just opened it. Luckily, things have been going great so far. She has no lease, so if it starts to tank she's not paying rent for a year. Also, she got displays, a counter and even a cash register for free. Things are going well so far, but I think she needs to read your blog. Babysitter Tips

By: Steve Chambers

Steve Chambers — Fri, 24 Oct 2008 14:41:38 +0000

What an excellent post! Most small business people rely more on hope than mathematics, even though this is simple math. Solid financial forecasting is the key to business success. Imagine how much fun this was before Spreadsheets. Steve Sales and Leadership Consultant

By: Philip Graves

Philip Graves — Fri, 24 Oct 2008 14:01:10 +0000

You seem to over-looked the cost of hiring a consumer behaviour expert

Excellent breakdown. I couldn’t agree more about the power of spreadsheets too.

Consumer Behavior Consultant