Hey guys,
With the low overhead involved with the business, turning a profit shouldn't be hard at all.
There are two types of expenses you need to consider:
- One time expenses: things you'll need to buy to get your business started. ie. Software, stands for newsletters, business cards
- Recurring expenses: things you'll be paying for week after week
The initial start up fees are important of course, but the real thing you need to consider are the ongoing weekly expenses. You need to earn enough each week to cover those expenses. Anything over that, and you'll have POSITIVE CASH FLOW, which can be used to pay off any initial costs you incurred.
Once those initial costs are paid in full, and you are still generating positive weekly cash flow, you will be making a profit with your business.
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Recurring expenses:
- Templates: they start at $75/week and go as low as $30/week if you pay in advance. Let's assume that you are business savvy and at least pay for a year's worth @ $45/week.
- Printing: a good price for printing is $100/1000, but you could easily find better and worse deals. Shop around before you commit. Someone in the forum is offering printing for $75/1000 including shipping
.But, let's estimate a little high - better to err on the side of caution. $125/week - Gas: dropping off newsletters may require a vehicle if your area is spread out. A couple hours per area is all it'll take once you figure out your route. Say $20/week
That is about it. Of course, you may incur additional costs, but you'll have to factor those into your own equation. You may hire sales people (I'd recommend on a commission basis), but they'll only be paid if they bring in revenue. You may hire people to deliver. Whatever the costs you are planning, just factor them in.
So far we're looking at $190/week
How many ads do you have to sell to make $190? Again, that'll depend on the size of ads you sell, and how much you charge for them.
But, let's just assume you sell the small ads @ $25/week.
If you sold 8, you would have $200, a $10 profit! Not much, but you are on your way. That still leaves you 25 more ad spaces that are pure profit! (@ $25/ad, that adds up to $625/we
ek)
Remember to outsource - you only have 24 hours in a day, and can only do so much. If you are running yourself ragged in one area, how will you ever expand into 2 or 3 or even 20 areas? USE OTHER PEOPLE!
- Sales People: If you have a sales team, working on commission, then you don't ever need to worry about selling again. That'll free you up to open new areas. Pretty soon, the tidy profit you earned from one area will double, then triple, and so on!
- Drivers: Consider hiring drivers after you are making a profit in your first area, consider hiring a driver on a flat weekly fee. It's just one more thing you won't have to do, and then you'll have time to grow your business.
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