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CPA's Profit & Loss Report

Alignment Always Works

The following is a CPA-prepared Profit & Loss Statement for those years we ran the program as a one person consulting and services business.

For tax purposes, some Indirect Expenses assigned to the program were as a percentage of total yearly expenses rather than actual expenditures. See additional notes below. Your level of income may be higher or lower.




Alignment Marketing Services
INCOME STATEMENT


                           Year 6    Year 5    Year 4    Year 3    Year 2    Year 1
  ACTUAL SALES             78,643    67,530    66,011    47,396    47,654    27,312
 
  DIRECT EXPENSES
  Advertising/Mtrls        15,157    13,474    12,832     1,900     3,461     1,108
  Accounting/legal            205       175       225       280       500       756
  Office expenses             758       537       318        --        --        --
  Telephone (60%)           4,544     4,717     6,647     3,276     2,362     1,802
  Postage & shipping          453       678       751     3,698     3,600     2,555
  Database/lists            1,756     1,002     1,689     3,163     4,658     1,914
  TOTAL DIRECT             22,873    20,583    22,462    12,317    14,581     8,135

  GROSS PROFIT             55,770    46,947    43,549    35,079    33,073    19,177

  INDIRECT EXPENSES (for tax purposes)
  Contract labor              --         --        --     2,282     1,000       402
  Auto expenses            1,575      1,575     1,550     1,500     1,450       700
  Commissions                300        720     1,920        --        --        --
  Depreciation               770        770        --        --        --        --
  Rent                     3,200      3,200     3,200     2,777     1,167        --
  Travel                      --         --        --        --     2,500       500
  Meals & Entertainment    5,241      4,650     5,001     3,278     3,150     3,878
  Telephone (40%)          3,040      3,144     4,431     2,183     1,574     1,201
  Dues/subscriptions          --         --        97        --        --        61
  TOTAL INDIRECT          14,126     14,066    16,199    12,020    10,841     6,742

  NET PROFIT              41,644     32,881    27,350    23,059    22,232    12,435

NOTES
  - The business operated as a single person, PC- based, part time effort (15 hrs per week, 30 wks per year)
  - All sales by fax, email and phone. No in person presentations or service calls
  - No program renewals as we continually tested combinations of program fees and services
  - All services were prepaid as we were dealing with unknown buyers in remote markets


  EXPANSION POSSIBILITIES
  -  Provide backroom services (email, social networking, print, AdWords, collaterals, etc.) for each program
  - Expand programs both vertically and horizontally (by market, industry and company size)
  - Support and focus on program renewals and ongoing business among existing customers
  - Provide customary 30 day billing for credit worthy customers
-  Add in-person on-location group 'breakfast' workshop and networking sessions
- Offer book and CD as stand alone products through direct sales and affiliate sales