# Help with sales projections needed!



## Inkabilly (Sep 12, 2010)

Hi there,

We are just setting up our silk-screen printing business, designing and printing t-shirts for adults and kids (all inhouse). Even though we are currently self-funding, in order to open a business bank account, our bank have asked us to give them a sales projection of growth for our first three years ... and until we start selling, we have no idea how to work out these figures! Can anyone help us work out a reasonable growth rate for this kind of set-up? Or give us some examples?

We will have our own website and will also sell through Etsy & Ebay. We are also planning to take ourselves out to festivals and conventions in th UK as a trade stall. Our designs are very much in the tattoo/rock/hotrod/biker genre, so we have a specific market in mind that we know quite well and have good feedback on our designs so far from friends and family.

Thanks! .. and I hope this isn't an annoying/silly question :/


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## PositiveDave (Dec 1, 2008)

Just make the figures up. No business plan ever survives contact with customers and it's all a guess anyway, so don't waste too much time & grey hair over exact figures.


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## Inkabilly (Sep 12, 2010)

Thanks Dave! 

I kinda thought it might be all guess work in the end, but was worried incase there is a template the bank expect to see just to show we are serious.


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## IYFGraphics (Sep 28, 2009)

Inkabilly said:


> Even though we are currently self-funding, in order to open a business bank account, our bank have asked us to give them a sales projection of growth for our first three years ... and until we start selling, we have no idea how to work out these figures! Can anyone help us work out a reasonable growth rate for this kind of set-up? Or give us some examples?


Since your self-funded now your growth potential is "the sky's the limit!" like Dave said a number is all they are looking for give them a few 100% so they go wow!.....from 0 sales to anything is going to be a huge amount. The funny thing to me is why would a bank want sales figures? it's really non of their business IMHO.

Hope this helps.


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## KUSTOM_DUDE (Sep 22, 2010)

Inkabilly said:


> and have good feedback on our designs so far from friends and family.


The problem with family and friends is that they tend to only give positive feedback for fear of offending.

As with any new venture, it about putting your products in the big wide world and seeing how well they thrive. In that context it is impossible to say how well (or badly) that venture will do.

Just make up the figures for the bank, as they'll only be a guesstimate anyway. Just remember that with a business bank account they'll charge you for every cheque you write and every payment you make, so will be making money from your enterprise.


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## PositiveDave (Dec 1, 2008)

Just remember, there's no law against optimism.
You only want to open a bank account! If they are lending you money then I can see that they need to do a risk assessment, they probably want to see how much insurance they can sell you.
I'd use really accurate figures, 34.3% in the first year 28.7% in the second. Are we talking turnover or gross profit or nett profit. A bit of advice - cash is the only thing that counts.


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## Inkabilly (Sep 12, 2010)

Thanks everyone! This is our first thread on here - it's really encouraging to know you're all there being supportive! This setting up in business can feel a bit scary at times!

I just re-read the bank stuff and they want 'projected income' and 'growth rate' - not sure where I got "first 3 years" from (obviously been reading too much into things!) ... SO, I reckon we can come up with some suitable 'figures' now. 

Thanks again!

P.S. regarding bank charges, we are (hopefully) getting an account with the Co-op through the FSB, which offers FREE BANKING for all transactions. They only charge for cash transactions over 4K a month. Pretty good stuff!


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## PositiveDave (Dec 1, 2008)

Actually that looks like a pretty good deal!


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## binki (Jul 16, 2006)

Inkabilly said:


> ... in order to open a business bank account, our bank have asked us to give them a sales projection of growth for our first three years ...


find another bank. it is none of their business.

we use a credit union, better service and no fees.


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## danben (Jul 26, 2007)

yeah seriously thats bad business on the banks part. We use a bank that gives us a check scanner for free and has absolutely no fees for business checking accounts whatsoever. Best thing we ever did. 

The bank we were using was charging us every fee imaginable. 5.00 for this, 2.00 for that and it ended up to a substantial amount when alls said and done. 

This new bank, nothing. They even reimburse my ATM fees, they don't charge to use ATMs and they pay the banks fees for you. The trick is they don't have but one brick and mortar location. All the transactions are done right from the business through the check scanner and through online banking. 

They even have it so that you can transfer money each night into an account that earns you interest so your money is making money for you.

I would have never thought that these banks existed until we found ours, so keep searching until you find the bank that is right for you. Don't give them any of that unless you are asking to borrow money. You should be requested these things from them, as you are putting your money into their business. 

Don't pay more than you have to, and just because they are right next door doesn't mean there isn't something better. Good luck!


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## binki (Jul 16, 2006)

ah yes, bank fees, here are some of them that i can think of off the top of my head

transaction fee for deposits
check fee for writing checks
service fee for calling them
service fee for going in
statement fee
low balance fee
high balance fee
fee per item in deposit
fee for depositing too much currency
fee for too many deposits

find a bank that doesnt do these.


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## IYFGraphics (Sep 28, 2009)

And if the Feds pas HR4646 expect them to grab 1% of every jump your money makes.

H.R. 4646: Debt Free America Act (GovTrack.us)

Hope this helps.


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## binki (Jul 16, 2006)

so the debt free america act is coming from a government that spends more than it brings in?


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## IYFGraphics (Sep 28, 2009)

Yes Sir....hey they have the ability to print it to, well if the Federal Reserve will let them....LOL!

The funny thing about HR4646 is that it's being billed as a way to remove the individual income tax that we all love so much, I'd bet it'll never happen if anything we will have both.

Hope this helps.


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## binki (Jul 16, 2006)

Well, here in the PRC, every time the Feds make a cut to taxes the State makes an equal increase to confiscate it.


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