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Bottom-up Calculator

We’ve developed a streamlined spreadsheet that allows you to clearly and simply compare the viability of our franchise titled the Bottom-up calculator. Traditional accounting and business philosophy follows this line of thinking: What are my sales? Subtract from that my cost of goods, fixed and variable expenses and what’s left over is the bottom-line profit. Sometimes it’s almost a surprise that the business owner or franchisee made money.

Bottom-up thinking uses a reverse-engineering approach or mindset. Ask yourself, “How much money do I need to make?” Then establish the targeted “net profit margin” that you must maintain. Ask the franchisees at Skedaddle Humane Wildlife Control what they expected to achieve and what they’re achieving now. The simple truth is that the income you desire divided by net profit margin establishes the gross sales goal you must hit.

For a definition of each term below, simply move your cursor over it. There are also suggestions available if you click "more info" buttons.

Please provide the following numbers.

Typical net margins
Meager Net Margin 10%
Average Net Margin 20%
Outstanding Net Margin 30%
Rare Net Margin 40%
Insert one of these % for your projections

Net Profit Margin – After you pay all expenses and overhead the amount left over is net profit. You will obtain the typical or expected net profit margin percentage during your validation calls with our franchise operators. (See the chart for reference)

Average Transaction – How much does each customer spend for the initial wildlife assessment/removal, the prevention from the animal returning and the restoration of the attic damage? You get the picture. Another way to determine average transaction is gross sales divided by the number of customers served.

Typical closing percentages
Poor Closing Skills 40%
Average Closing Skills 50%
Strong Closing Skils 60%
Outstanding Closing Skills 75%
Insert one of these % for your projections

Average Closing Percentage – After our call centre forwards you a qualified prospect with a legitimate animal invasion, how many of the onsite “property assessment” turn into booked jobs? Enter the percentage you think you can close in the bottom-up calculator. (See the chart for reference)

Territory Population – Enter the size of the territory that your franchise business will serve. Usually, this is a qualified number of people, household and other demographic factors. We recommend 250,000 population.

Achievable market penetration %
Starbucks - Market dominator 9%
Mature franchise goal 5%
Stable franchise goal 4% to 3%
Realist and obtainable 3% to 2%
1st year goal 2% to 1%

Market Penetration – The smaller the market share percentage you need, the easier it is to get established. Think of a large pond with fewer people fishing in it. If the population size is 225,000 people and you need 700 property assessment from which you will close 50% of those deals, your market penetration will be 1% or less. (See the chart for reference)