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c16 JWBT144/Gordon September 25, 2009 17:46 Printer Name: Courier Westford, Westford, MA
TRUMP UNIVERSITY ENTREPRENEURSHIP 101
Downloadable Exhibit 16.4 Assumptions
*
(continued )
Type of Business Bookstore Café
On-Site Computer
Training
Gross profit per month
(revenue – COGS)
$12,750
($31,500 – $18,750)
$7,500
($10,000 – $2500)
Total revenue
per year
$378,000 $120,000
Gross profit margin per
year
(revenue – COGS)
$153,000
($378,000 – $225,000)
$90,000
($120,000 – $30,000)
Total operating costs
(TOC)
Assumptions:
$90,000
Assumptions:
$24,000
Profit from Operations
(known as EBITDA)
$63,000
($153,000 – $90,000)
$66,000
($90,000 – $24,000)
Source: The Center for Competitive Success, www.CompetitiveSuccess.com, “Assumptions.”
Copyright
C
2000 by Michael E. Gordon. Used with permission.
*A blank version of this page can be downloaded from www.trumpuniversity.com/entrepre
neurship101 for your personal use.
have operating costs. Your task is to develop this list of operating costs for your
own business using Exhibit 16.5 as a template. To help you zero in, consider
a range of values for each line item: optimistic, pessimistic, and most likely.
Fill in your values and arrive at an amount for total operating costs (TOC).
It is now time to apply what you are learning to your own business. Refer
back to Exhibit 16.3 and slowly crawl through each row with me. For now,
fill in your numbers for one month only. Estimate ...