Profit Potential Estimator

To discover your business’ potential for improved profitability, we recommend you test two scenarios: First, complete the blank fields under the ‘Current’ heading, leave the ‘Vary By’ fields at their default 5%, and click ‘Calculate’.

From the Results screen which will display next, study your results, click ‘Print Results’ then click ‘Re-enter’ and repeat the process using your own values in the ‘Vary By’ cells and ‘Calculate’ to see your real profit potential.

 
 Prepared for
 I am currently  years old.
 I expect to live to the age of   years.
 I wish to be financially free in  years time.
 I will require   annually in today's money.
  Current   Vary By    
Sales   %    
Cost of Sales   %   (NOTE To enter a decrease, start with a minus sign then a number)
           
Overheads
by
 %    
           
Taxation
by
 %    
Tax Rate  %

Input the current Company or Business Tax Rate

        
Invest @  %

Input your expected annual return on investments you make while still working your business

        
FF investment rate  %

Input your expected return on investments after you are FinanciallyFree (FF) – usually more conservative than when you have a business to buffer higher risk investments

        
FF inflation rate   %

Your estimate of Inflation after you are Financially Free (30-year historical average for Australia is around 3%)

        
Goodwill Multiple  

The factor applied to your pre-tax profits that a buyer would be willing to pay for your business.