This card is designed to assist you in managing your finances, even if you prefer to avoid dealing with numbers. It will aid you in calculating your revenues, expenses, and profits while promoting responsible pricing. Although it is not a comprehensive financial plan, it is a valuable resource to have at your disposal.
Step 1: Choose a Timespan
Decide on a specific timespan, such as one year, to evaluate your financial situation. Use a spreadsheet to calculate detailed numbers before summarizing them on the card.
Step 2: Calculate Revenues and Expenses
List the projected revenue streams for your chosen timespan. Then, carefully add all expenses, paying attention to often-forgotten or seemingly small costs. Remember that even minor recurring expenses can accumulate significantly.
Step 3: Determine Profitability
Subtract the total expenses from the sum of revenue streams to calculate your profit. If the profit is negative or near zero, it indicates potential trouble, considering hidden costs and unexpected expenses. Rethink your margin strategy.
Step 4: Revenue and Funding Ideas
Create a list of revenue and funding possibilities to support your idea, product, or service. Especially in the early stages, when expenses may exceed revenues, having alternative sources of income can help you move forward.
Remember, the goal is to ensure your product earns more than it costs. Adopt an underspending approach and make strategic decisions to achieve long-term success.
The Videos and recipes to each card are publicly available, but only those bootstrappers who sit down and map out their idea, product or service will get an extra boost to the future.