Page 57 - The Bootstrapper Bible

ChangeThis Now, tally up your three columns. Youʼve just figured out the best and the worst youʼre ever going to do in expenses. Multiply your three numbers by 9. Now you know how much cash you need to last you nine months if all of your expenses are maximized and you have no revenue. But of course, you do have revenue. It can be unpredictable. So, make two more lists. In one, list all the guaranteed revenue youʼve got contracts for over the next nine months. In the other one, list all the likely sources of revenue you expect over the next nine months. CONTRACTED REVENUE JUNE $1000 JULY $18,000 AUGUST $32,000 SEPTEMBER $0 LIKELY REVENUE (NOT COUNTING CONTRACTED REVENUE) MONTH MINIMUM EXPECTED MAXIMUM JUNE $4000 $5,000 $15,000 JULY $10,000 $15,000 $40,000 AUGUST $4,000 $5,000 $15,000 SEPTEMBER $4,000 $5,000 $1$15,000 Donʼt kid yourself on the upside. Itʼs one thing to be positive and optimistic in your daily life. But be a superrealist when it comes time to do revenue projections. In fact, be a pessimist. Being pleasantly surprised by an increase in revenue sure beats the alternative. | iss. 6.01 | i | U | X | + | h 57/103 f