Case 3 Details

Case3 Graph:Year 1
Case3 Graph:Year 2
 
Year 1
Year 2
Total Revenue
$28,083,891
$51,541,272
Total Expenses
$14,634,414
$28,781,051
Profit
$13,449,477
$22,760,220
Investor/Artist
$3,833,357
$10,308,254

First Year Revenue Components

879 customers buying $5000 advertising every six months is 12 customers per each of the six sales people per month

Case3-Ads

4% of our average engaged listeners instead of 1% makes for 19280 subscribers

Get 1800 benefits customers (4% of who we know) paying their premiums each month.

Case3-Benes

Sell 9640 hatss.

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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