Download kickstarter funding7/3/2023 I’m going to change the terminology a little bit because: Income - Cost of Goods Sold - Overhead = Net profit To arrive at the net profit is simple arithmetic: Title P&Ls are built in five sections: 1) Sales estimates 2) Income, 3) Cost of Goods Sold, 4) Overhead, and 5) Net profit (or loss). The main tool for evaluating a new book’s potential is the title P&L which, when suitably modified, is the perfect tool for building a budget for a Kickstarter publishing project. This applies to both for-profit and nonprofit publishers: it doesn’t matter whether the capital comes from sales or donations or both, it is always limited. If they don’t do this they go out of business, because they publish too many books that lose money. Be sure and check your work carefully after modifying-it is very easy to introduce errors into worksheets! The Book P&Līecause book publishers have limited capital to invest in book projects, they examine the income potential for each new book prior to publication. It’s easy to import and modify the worksheet to fit your project in Excel, Apple Numbers, or any other spreadsheet program. There are no doubt items in this sample P&L worksheet that aren’t relevant to your project, and probably relevant items that are missing. You can download this basic Title P&L worksheet modified for a Kickstarter project here or at the end of this post. Next week, I’ll provide a P&L for selling through broader channels, with options including the book trade and selling as an Amazon merchant. In this post, I outline a Kickstarter-adapted Title P&L for a project with book distribution limited to your backers, and selling direct yourself. These P&Ls lend themselves well to creating a Kickstarter budget, with appropriate modifications. Book publishers have a very useful tool for addressing just these questions: the Title Profit & Loss worksheet, which is created for each new book the publisher is considering publishing. You want to set your fundraising goal at a reasonable level, but you don’t want the project to fail because you underestimate the real costs. When you are budgeting your Kickstarter book project, making an accurate budget is important.
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