Business Revenue Spreadsheet

You will create an Excel spreadsheet file that lists all the products you will sell and/or the services you will provide. Like the expenses spreadsheet, this spreadsheet should contain two tables – one that lists each item along with its cost, selling price, and profit, and another that shows the total profit you plan to make over a one year period.

The selling price of each item is the dollar amount that you will charge your customers. You will determine what the selling price will be. You will need to do some online research to make sure that 1) your prices are fair, and 2) your prices are competitive with other businesses that sell similar products or offer similar services.

The unit cost is the price that you pay for each item (typically, businesses will charge a 30% markup for each item). Because it is difficult to find this price by researching on the internet, we will work backwards – the unit price will be 70% of the selling price that you come up with.

The profit (per unit) is the difference between the selling price and the unit price. This is the money that you will use to pay off your other expenses (bills, advertising, employee salaries, etc..) in the beginning, and if your business is successful, the money you will make.

The number of units is the amount of each item that you plan to sell each month. You will choose this number by guesstimating. You might want to research to see if you can find out how other businesses are doing. If you choose a number that is too low, then you will not make any profit and will be forced to go out of business. If you choose a number that is too high, then your investors will not take you seriously and will not loan you the money you need to start your business.

The total profit is the total money you will make for each item. It is found by multiplying the profit per unit by the number of units.