I’m writing a business plan, and part of it, of course, are the financials.
Specifically, I’m looking to find out where I can find financial ratios, web traffic forecasts, and other industry standards for blogging ‘companies’ or other e-commerce sites that deal almost exclusively with the free information arena, like, uh, blogs.
I mean how do you calculate profit from the event of getting most of your revenue from advertisers?
Is there a website that will show me financial ratios for these kinds of companies or websites themselves? for free?
You are in one of the ‘fun parts’ of building a financial plan here. Tough one.
Each industry varies. You probably already have the projection for the firs financial year down based on present numbers.
Do some research. I included a site that MAY help you. Some industries have a higher growth rate than others. Downside factors like inflation and depreciation of currency and assets, couple of things to consider.
Profit is calculated simply : Gross earnings – cost = P
In your case, you will have to determine what your rate is going to be for advertisers. You are not going to charge a client the same rate for a period of 5 years are you? The income from an advertiser will be in proportion of your running costs.
If my site [example, but I had my own IT company one] costs me to run $6000 per year and my advertising space is booked at $12000 per year, well next year my projection shows that costs may rise $500 for the year where my advertisers are concerned so adjust it in the same ratio.
Check out the site. Hope it helps a bit. You do have some reading to do there so best of luck!