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.
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Please provide the following numbers.