Case 2 Details

Case2-Graph-Year2
 
Year 1
Year 2
Total Revenue
$6,997,854
$12,842,856
Total Expenses
$4,015,133
$7,678,563
Profit
$370,418
$5,164,293
Investor/Artist
$756,985
$2,568,571

First Year Revenue Components

221 customers buying a $5000 ad every 2 months. (5 customers for each of four salespeople per month)

Case2-Ads

1% of our average engaged listeners instead of .1% makes for 4820 subscribers

Case2-Subs

Get 1 percent of all of the CxO team’s connections enrolled in benefits, 450 people paying each month

Keeping the same ratio as Case 1 we sell 10x the hats for 482 hats.

Constants and Assumptions for each case

Constants
 
GS&A expenses as a percentage of revenue (no more than)
20.00%
Office Expense (supplies, fees, etc) (typical)
5.00%
Legal and accouting fees by percent of revenue 
4.00%
Business Insurance typical percentage of revenue
3%
Average annual raise of salaried employees as percentage of revenue
12.00%
Commission for Ad Sales Team
30.00%
Artist Salary Fund Investment (percent of revenue)
10.00%
Revenue Royalty to Investor
10.00%
Unified Communications and Business phone, monthly
$500
Executive Compensation Yearly Raise
14.00%
GWS commission per user per month
20
Licensing Fee (Percentage of Revenue)
2%
General inflation
3%

Here’s a link to download an archive of the supporting financial model spreadsheets.  Unzip all into one folder and open the Masters Radio-FinancialPlans-Case2 Spreadsheet as it draws from all the others.

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