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<p class="tenTitle">Module 4i: Profit / Loss Forecast<br />
<div id="tenForm"> What are your financial estimates for the first 12 months of operation including expenses, income, profit, taxes, income after taxes, and other money income from sources other than business (i.e., Social Security, spouse's wages, retirement pensions, etc.)
<p>In forecasting your businesses potential, it is critical to distinguish between what you hope will happen, and what you expect will happen. We are usually quite optimistic when we think about our businesses potential, and are reluctant to accept that this is the "best of all possible worlds" expectation and reality may be considerable lower. It is very important to be as realistic as possible in developing these expectations or forecasts of your businesses potential, because you are making important decisions about the investment of your own time and money. Others such as family members may be involved as well. In Step 3, you completed a series of exercises that allowed you to develop a <a href="http://www.buzgate.org/8.0/excel/forecasting_wrksht.xls" target="_blank">12 month forecast</a>. Now is a good time to review those results and think again about whether or not the assumptions are realistic, and the results make sense. Your Accounting professional wiil need to help you estimateyour taxes otherwise enter 0(zero). For other money income; list income from any other sources such as social security, spouses wages, etc. This also is a good time to discuss these results with your counselor or mentor. Once again, the process of discussing these ideas helps to see whether or not they make sense.</p>
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Total Revenue</td><td><input type="text" style="40" name="totalRev" value="">
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Less: Variable Cost</td><td><input type="text" style="40" name="vCost" value="">
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Gross profit</td><td><input type="text" style="40" name="grossProfit" value="">
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Less: Overhead Cost</td><td>
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Net Profit</td><td>
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Taxes</td><td>
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Profit After Taxes</td><td>
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Other Income</td><td>
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Net Income</td><td>
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