Income estimates
An accurate estimate of your company’s income is essential to justify your financial projections. A worthwhile approach is to list potential clients and to the best of your knowledge assess the value of the proposed contracts and your chances of obtaining these. The result of that analysis provides an approximate estimation to justify your business plan. First and foremost, this is a good planning excercice for you.
Future Income Estimates
| Clients | Value of the potentiel contract | Chance of success | Potential income |
| Abc inc. | $25 000 | 100% | $25 000 |
| Def inc. | $10 000 | 75% | $7 500 |
| Ghi inc. | $15 000 | 50% | $7 500 |
| Jkl inc. | $15 000 | 50% | $7 500 |
| Mno inc. | $5 000 | 25% | $1 250 |
| Pqr inc. | $5 000 | 25% | $1 250 |
| 0 | 0% | 0 | |
| 0 | 0% | 0 | |
| Total | $75 000 | 0% | $50 000 |
Value of the potential contract: Goods or services you want to sell.
Chance of success: Selling your goods or services (be realistic).
Potential income: An estimate of your future income according to current sales efforts.
The exercise is a simple way for you to estimate future income.