Financial Freedom Calculator
Your Profit Potential Report
This personalized report reveals four powerful insights into your unrealized profit potential:
- The profits currently leaking out of your business
- How small, targeted improvements can dramatically increase your profits
- How investing those new profits can accelerate your path to financial freedom
- How increased profitability can significantly raise the value of your company
| Metric | Current | % Change | Projected | Difference | Note |
|---|---|---|---|---|---|
| Sales | $10 | 5.000% | $11 | $1 | |
| Cost of Sales | $20 | -5.000% | $19 | $-1 | |
| Gross Profit | $-10 | -15.000% | $-9 | $2 | |
| Overheads | $20 | -5.000% | $19 | $-1 | |
| Net Profit | $-30 | -8.333% | $-28 | $3 | |
| Taxes/Tax Rate | $-9 | -5.000% | $-8 | $1 | |
| After Tax Profit | $-21 | -6.369% | $-20 | $1 |
What This Means—For Me
By making a few simple adjustments, I can increase my cash profits by —adding to my bottom line—by simply:
- Increasing sales by
- Reducing cost of sales by
- Lowering overheads by
That is new additional profit—profit my business is not generating today.
About Paying Tax
Yes, I’ll pay an additional in tax from that new profit of . But, I’ll have the cash to do that and still have in after-tax profit that I can choose to spend or invest. Most importantly, I’m reducing my tax rate by – so I’m paying more overall, but at a lower rate.
If I Do This Just Once
If I optimize my business for one year and invest the additional after-tax profit of at a annual return, in years that one-time investment will grow to . That’s money working for me—and growing. Yes, I’ll owe tax on the interest and capital gains, but I’ll have plenty of cash for that.
However, if I commit to this process and keep investing my after-tax profit of annually at for years, I’ll accumulate —just from improvements to my business that I control.
My Profit Turnaround—By the Numbers
By making small improvements that generate in new after-tax profit:
- A one-time investment grows to in years
- Repeating and compounding that investment every year grows to in years
Bonus: Increased Business Valuation
Improving profitability also boosts the enterprise value of my business. An interested investor may be willing to pay x cashflow, or an additional based on the increase in pre-tax profit. That’s a major lift in business value—without increasing my hours or team size.
My Path to Financial Freedom
To enjoy financial freedom in years with in annual income (adjusted for today’s dollars), I estimate needing a portfolio of approximately (based on a % withdrawal rate, calculated from a % expected return and % inflation) working for me.
By unlocking the hidden profit potential in my business, I can add:
- from cumulative after-tax profit gains
- increase in business valuation when I sell my business
That gets me closer to my financial freedom goal of .
Why am I not doing this!?
Your Unrealized Profit Potential
This personalized report reveals four powerful insights:
- The profits currently leaking out of your business
- How small, targeted improvements can dramatically increase your bottom line
- How reinvesting those new profits can accelerate your path to financial freedom
- How increased profitability can significantly raise the value of your company
| Metric | Current | % Change | Projected | Difference | Note |
|---|---|---|---|---|---|
| Sales | Presumed to increase by volume | ||||
| Cost of Sales | May rise with more volume | ||||
| Gross Profit | Sales minus Cost of Sales | ||||
| Overheads | Includes wages, rent, admin | ||||
| Net Profit | Gross Profit - Overheads | ||||
| Taxation | Progressive tax system | ||||
| After Tax Profit | Net cash gain |
What This Means—for Me
By making a few simple adjustments, I can increase my profits by ?— adding ? to my bottom line—by simply:
- Increasing sales by ?%
- Reducing cost of sales by ?%
- Lowering overhead by ?%
That ? is new profit my business isn't generating yet.
If I Do This Just Once
If I optimize my business for one year and invest the additional after-tax profits of ? at a ?% annual return, in ? years that one-time investment would grow to ?.
If I Do This Every Year
By committing every year and investing ? at ?% for ? years, I'll accumulate ?—just from controlled improvements.
Bonus: Increased Business Valuation
Profitability also increases your business value. An investor may pay ? more for the additional pre-tax profit.
My Path to Financial Freedom
To achieve financial freedom in ? years with ? in annual income, I estimate needing ?.
- ? from cumulative profits
- ? in increased business value
Total: ? closer to my goal.
Copyright © Life2Live, LLC. 2005 to Present.
All Rights Reserved. No part of this document may be used, displayed or reproduced without the consent of the author.