Collaborate on Plumbing Invoice Template for Organizations with Ease Using airSlate SignNow

Plumbing invoice template for organizations

[Music] [Applause] hey this is adam hook summer from projection hub and i'm going to walk you through our specialty subcontractor financial projection template so this template is really built to help subcontractors like plumbers electricians hvac roofing companies fencing companies remodeling services oh you know any sort of kind of specialty subcontractor or specialty contractor i could use this template to create a set of financial projections and often you may be asked for projections if you are trying to get a loan from a bank or maybe an sba loan maybe you need some new equipment or work vehicles um perhaps a building a work building any of those things where you might need a loan um oftentimes you're going to be asked for projections and so that's what this template is here to to help you do so i'm going to walk you through how to fill this out for your specific business so the first thing you need to know is that on every tab down here there are going to be cells that are highlighted in blue in this light blue color and these are assumptions that you can change without breaking anything in the template so so i'm just going to kind of walk you through i have some example data in here already i may change some of this data as i go and fill out a set of projections for an example subcontractor so let's uh let's think about maybe a plumbing company so say um adams residential plumbing and we provide residential plumbing services let's say we're getting started in january 2022 and let's say i've got a personal i've made a personal investment to start the company at 50 000 and this what this means is that accounts receivable terms so this is saying that eighty percent of the of my revenue my sales i collect when i provide the service so that would be um that would be like if i'm going to provide you know a new water heater at a residential home i would get payment when i do the work right now let's say you have some commercial contracts maybe you have some commercial work that you do those jobs you might not get paid for let's say 30 days so if you were doing let's say half residential and half commercial you might want to make this 50 50 all right um let's say you have you have a shop with some initial some inventory maybe ten thousand dollars worth of inventory on hand and you've got some tools so in this fixed asset section you've got fifty thousand dollars worth of tools maybe a couple different trucks a few different trucks totally a hundred thousand these tools we're gonna say last ten years i'm gonna say salvage cost is like what will these be worth at the end of their useful life and basically nothing um they'd just be salvaged and then maybe you have a small a small building um maybe a storage building or something maybe even just like a pole barn or garage you could put that here and let's say you got a two hundred thousand dollar loan from from the bank it's a ten year term at six and a half percent all right so now we're going to create your sales projections and what you'll notice here is that the way we're kind of driving how you get customers is through advertising primarily to like get those new customers in the door so let's say you do some print advertising and this is saying the cost of a new contact from from print advertising so so we're saying it costs five dollars so if you spend a hundred dollars on print advertising it costs five dollars to get a new contact or potential customer um maybe maybe this is just someone that like uh calls to ask about ask for a quote um so that could be what a new contact actually means in this case and so that that seems pretty aggressive to me a hundred dollars gets gets you 20 new contacts i'm i'm thinking probably going to be more like you spend dollars to get five contacts probably uh radio same sort of thing you're probably gonna spend a hundred dollars to get a couple contacts each month and maybe some online advertising so this could be like facebook or google advertising so if people you know search for like plumber near me um or plumbing services in you know my city um there could be a cost per click and then maybe they fill out a form on your website to for a contact form um two dollars is way too low that might be a cost per click but to actually get them to fill out the form let's say it's going to cost you a hundred dollars so that gets you five new contacts okay so now you have 12 new contacts in month one from paid advertising we're saying what percentage of those new contacts become repeat customers so let's say you close 60 of them that's what this is saying and and then what this is saying is do you have a customer base now now what percentage of this uh kind of of that customer base becomes repeat customers um and what percentage of of them churn or cancel so you know 60 of them end up becoming repeat customers um you know let's say maybe five percent of that that group kind of cancels each month there isn't a repeat customer anymore that's what that's saying okay so now we've got new context of the new contacts what percentage of the new contacts of these 12 need need services each month and this is right now saying 90 of the new contacts so these are new people that just contacted you what percentage of them are going to ask for service and there's probably going to be a high percentage right they're contacting you reaching out to ask for service and so probably a high percentage of them maybe 90 maybe maybe 80 um actually need service in that first month and then after that this is saying um basically now you have these repeat customers hopefully you provided a good service and so now the next time they have a plumbing need are they going to call you the hope is yes and then what percentage of the that repeat customer base is going to call you each month so at eight percent if we say eight percent that's approximately that means approximately your customer base is going to call you once a year it's 12 times 8 percent 12 months times 8 percent that's close to a to 100 so so that's kind of what we're estimating here is that you're gonna have you know you're gonna do advertising to get these new customers in the door eighty percent of them are gonna hire you for service and right away but and then after that they'll call you back once a year for additional you know residential plumbing service that's that's what we have and of course you can change any of these assumptions but that's what we have in here as an example so now here what you're going to want to do is put in your different kind of service category so you know maybe you know toilet replacement you know fixing a leak you know doing some um maybe it's like excavator work like pipes in the ground and maybe it's new uh new pipes that you're installing new toilets new sinks um any sort of different services so if you have kind of your you know new water heater water softener if you have your kind of standard services you should enter those in here and then here what you want to do is say what percentage of your total sales does each each of these categories make up so is 10 of your business water softeners so like if we did water tough installation uh and we could say maybe 10 of our total businesses water softener insulation and so you'll want to put in all your different categories and make sure that these percentages add up to 100 percent 100 of your sales should be represented here from these different options so it could be a service call uh maybe that's 50 of your business well now see we're at 140 so we're gonna have to reduce some of these other areas let's do this so now we're back to 100 so that's what we're aiming to do here and you'll want to put in your different prices for these for these different services so maybe this is i don't know it's been a while since i've had this done i have no idea maybe eight hundred dollars for water softener and installation and maybe a normal service call maybe that's 99 and you're this is asking for your i'm gonna expand this a little bit so you can see okay so this is asking for your cost of materials on a water softener maybe if it's 800 total your custom material for the water softener itself you know maybe that's 200 maybe yeah cost of labor is maybe 150. so this would be you know to calculate your your cost of labor you want to know you know what you're paying your your plumbers that are out there doing the work what are you paying them per hour and then how many hours do you expect them to complete the job some maybe this one is for service call maybe costing materials maybe not very much ten dollars but maybe you're paying your your team forty dollars per hour and it takes them one hour to complete the call uh complete the service so forty dollars cost of labor so you can kind of see how you could you fill out this this table now um as we come down here this is saying you can increase your average revenue by five percent or you could do change this to um to to something else to a higher growth rate if you'd like and then your costs are probably going to increase over time as well and so you can increase your cost by this is an annual growth rate we're saying four percent maybe you might think it's going to be more or less and see there's no blue sections down here so this is all just calculations calculating your total revenue based on these numbers and your total cost of goods sold so i'm going to jump back up here [Music] real quick and show you one other thing so let's say so this is saying total repeat customer base it's assuming you're starting from zero here but maybe in your projections you actually have um maybe i already have a customer base let's just say well let me let me jump over here and just show you a glance what we've got so far so right now we're showing revenue based on what we entered in 82 000 with a big net loss of 87 000 well that's because you're starting from scratch you have no customers yet but let's say you did have some customers let's say you have a customer base of i don't know 400 people that you've provided service for in the past and okay so 400 people that's that's your starting repeat customer base now if we use that you can just see how having a customer base is going to increase our revenue because we're saying eight percent of those 400 people are going to be calling us once a year to get service right and you know maybe it's maybe it's larger so you could say we've worked with a thousand different customers that we kind of have in our database so now you're at a three hundred thousand dollar annual revenue so i'm going to kind of leave it there for now and show you some of these other tabs so here you can change your the amount of money you spend on those different advertising levels and if you change these so if you increase advertising just be aware that you're going to increase the number of new contacts or new quotes that you're providing because if you if you increase this to 200 but it cost you 20 to get a new contact from print advertising well now you're gonna have 10 contacts instead of five so just be aware that when you increase your advertising or decrease your advertising it's going to end up impacting your sales projections okay all right now i'm going to show you here that you can enter in any of these expenses as either a fixed dollar amount which most of them are fixed or as a percentage of total revenue so let's say um you accept credit card and a lot of your customers pay with credit card you might have credit card fees that are charged to you when people pay with credit card and so we're saying here that two percent of your total sales are going to be charges credit card fees credit card processing fees so instead of having to put in guess a fixed amount each month you can just say well i know it's going to be 2 percent of revenue you can add your insurance monthly expenses uh professional services this could be um you know maybe what we should say here is maybe you have an accountant and maybe the accountant probably going to be more expensive than 25 dollars maybe they're 500 a month um maybe you have rent for for your office or your building we also did have a hundred thousand dollar building initially on this page if you remember this building so you know it might be that you don't have rent um so you could zero that out if you don't have rent and then just supplies and this would not be supplies that would be like job supplies because we already included job supplies over here in your cost of material so you don't want to double count that here this is just like office supplies and then you've had utility internet and you can add more expenses as you have them down here as you think of other general expenses you're going to have you can add those and then you can add input salary or owner draw so let's say maybe it's just you as the owner and you have a receptionist taking calls or an office manager taking calls and helping organize um so maybe that's how you start that would be okay or if you have you know you have slots here to add lots of different employees so you know you could have you know plumber one you know if you just want to let's say this is going to be 50 000 and you can enter in your the taxes the employer portion of taxes let's say you have some benefits and then what month do they start so maybe in that first year you don't think they're going to start but maybe in month 13 so that'd be in year two you're going to add another plumber and then maybe in month 25 so year three you're going to add another plumber and here you can just say we've got one of this particular employee they're going to get a five percent rate each year and then down here if you're the owner you can put in a monthly owner drone so maybe to start out you're not going to take any owner draw until maybe for the first six months and then maybe you start by taking out a thousand dollars a month for the next six months and then maybe you try to go up to two thousand dollars a month maybe just drag that out across okay so that's that's what we have entered in here now i'm gonna go back and look at this at a glance so um i'm just gonna kind of show you some some troubleshooting here so now based on what we have entered the first year looks pretty good right but now and we're actually losing money in the future years and actually sales are going down so i'm going to go back and look at that and see why that might be and what we find here is it's because this this right here says this monthly churn rate or the number of repeat customers that you're losing we're saying we're losing two percent well two percent of a thousand is actually uh 20 that's 20 people but you're only adding 12 new contacts and so if you continue with that trend you're going to you're going to end up you know losing more customers than you're gaining and so that's why our sales end up going down over time so what i'm going to do to hopefully change that i'm going to let's say let's increase our monthly advertising here maybe we'll increase this to 250 [Music] maybe increase that to 750 so we're going to increase our advertising to hopefully find more customers and generate more revenue and we at least have fixed the the decreasing sales problem so that's that's good news but we're still showing a net loss and you know again that might be well look we added these two plumbers maybe we can't afford them yet um maybe we can't even afford the receptionist until month 13 maybe this plumber can't start until i don't know maybe year four and year five come over here all right so now we're looking a little better we're profitable if you look down here net income uh each year so you're gonna have to play around with this you're gonna have to um you know make your own assumptions uh this is just an example of how to fill out the template but you are going to be responsible and really need to um you know understand your own business and how you're going to acquire customers and what your services are going to be and that sort of thing so now i'll just show you one more thing here you've got your income statement summary here for five years your cash flow statement summary for five years your balance sheet for five years and then the income statement cash flow and balance sheet by month so now we've got these monthly projections so you can see that by each month and the last thing i wanted to mention is just right here so if you look at this and you're like why i can't i don't know how to fill this out or this is not really my model i need to customize this we are happy to help customize any of our templates so you can just click this request modification and it's going to bring you to a page on our website like this fill out this form ask us to tell us how you'd like it to be customized and we can get back to you with a quote on what it would take for us to customize this for you and um and that's that's really it so hope that was helpful reach out to us if you have questions at support projectionhub.com support projectionhub.com thanks