We can workshop money not made simple. The friends will have a back to the back of the podcast. This is a new segment. So we're doing only 25.
It's all about how we learn key steps to a new side console. One step, work on steps per week. And it includes activities, examples, and more. And of course, it's all free.
We're going to use the book side console for my get to income in 27 days. That is our text, our curriculum. We don't have the book. That's OK.
I'm going to take you through the key steps along with listen stories and examples throughout the year. And the episode comes from day five, which is all about making smart and simple projections. I'm going to try to keep this really simple. It's really helpful to know if you're starting business how much money is going to make.
And in some ways, of course, you don't know. That's why you have to experiment and try it and stuff. But there are some factors you can control that will help you make some smart projections. And therefore, it might help you make the right decisions in the first place.
You might choose the right business idea or some idea. And part of that is choosing a profitable idea. So our learning objective, profit forecasting doesn't require MBA. It doesn't require complex spreadsheets.
You can figure out if you decide how to make money using basic math on the back of an account. And the key is understanding one simple equation, which is expected income minus expected expenses equals projected profit. OK? So there's a story in the book about to share.
He's this guy who bought a bunch of cars, which sounds really complicated. But it's actually, for example, he leased and bought hopefully a car that he rented out on the platform to row. That's why he's the average daily rental rate. How many days were rented per month.
You know, that then equals my monthly rental income. And for each car, it was like $1,000 approximately. He realizes monthly expenses, which were insurance and maintenance for about $300. And so he's like $700 profit.
And then he thought because he was creative, that's cool idea for one car. But how can I do it for more? It's actually when I bought a whole fleet of cars, which made for a cool story. We featured him very early on in the podcast.
So the math was so promising that he expanded to winning out 16 cars. But it also was that simple calculation, showing how his first car would be profitable. OK? That's why this back of the napkin where it could be a spreadsheet, but it could be really simple one.
Talkulation is going to help you. That's like another example of a service. Like say, there's a graphic designer who wants to teach local design workshops. Well, they need to figure out what is the workshop fee.
Maybe it's $200 per student. Let's say, what is the maximum class size? Well, let's say 10 students. And those matches in person class, what are the room with $300?
Materials or $20 per student? So they kind of run those numbers and they're like, okay, potential profit per workshop is $1,500. Is that good? Well, if it's good, then you do it.
In order to consider moving forward. If it's not good, then you change some of the variables. Like you charge more. Or you reduce your expenses.
Or you try different idea. Back on my B-bit. So, if you're interested in doing the graphic design workshop, they show how simple calculations can reveal if an idea is worth pursuing. So, let me return.
We're going to take a quick break. We come back. How you can make some projections. That's how you can make those decisions about your next idea.
Because I want you to use your time most effectively. Especially for our audience of busy people. I make a show every day for people. So, let's take a quick break.
And then, smart projections. Here's a trick to making some more projections. Don't just make one of them. Create three scenarios to better understand potential idea.
That's my time like more work. It's going to be time to work. That's going to help you a great deal. So basically what you want to do is create a conservative estimate.
A realistic estimate. An optimistic estimate. A realistic estimate. A optimistic estimate.
Imagine a dog walking service. Conservative estimate would be three walks a day at $20 a day at $60 a day in revenue. Realistic. Five walks a day at $25 each.
So, we're increasing both the customers. The users at that point in this case, really it's the owners of the dog's repaying. And also the average price. So, five times 25 to $125 a day.
100, $125 a day. Or optimistic. We're going to say eight walks a day at $30 each. 200 and $400 a day.
So, you guys can go through and plug in the numbers. Based on what your idea is. Again, conservative. Realistic.
Optimistic. Now, your action exercise. The notes page for every week. And we can work shop.
And that is at size also. That's what I can do. Basically, you take an opinion or a piece of paper. It might be easier.
And create these quick projections for your size of the idea. So, start with your most basic offer. Work three steps. Write down your plan price.
List every expense you can think of. Catch like your profit for sale. That's the main time you say it might make for a week. And then multiply that to find the monthly potential.
It sounds like a lot of it's going to be not actually very logical. And so, fold each other in the book. More information at the website. And it's going to be a much more different for a few there.
There will be more resources to come. Now, doing this kind of estimate to help you a lot. Have you saved time. And as I said, choose the right side of the idea.
And that's a big part of the successful success. It's actually like choosing the right idea to start with. Rather than just choosing one idea to work on it. And they might be a much more ideas this way for you.
So, I would encourage you to put some time into these selection ideas. And of course, remember that these are estimates not guarantees. But hopefully, it's an understanding if your idea has real potential before you invest significant time for money. That's it for today.
Thank you for listening. Thanks for tuning in. I'm excited to get this year off the running. This is episode of 2014, 2014, 2014.
It's always free. My name is Chris Hill about your listening to Side Hustle School. From the On-Re-Project. From the On-Re-Project.
On-Re-Project.