Profit Potential

Now, what about your business ideas? Could you possibly create a business concept that might one day grow into a mega-corporation that goes public?

Before you go to the next lesson, spend some time evaluating the top ideas for a business that you developed in Lesson 2. We have two important learning activities that will help you calculate the potential profitability and feasibility of your idea(s) and see whether you are willing to take the risk of starting a business. If you are taking this course for a grade or for credit, you will complete these activities and turn in your work to your advisor or teacher.

           
Activity 3: What Is the Potential Profit on My Product?

Do you have a great idea for a product — something you think a lot of people will want to buy? Before you invest time and money in starting the business, it is important to know the potential profit on your product(s).

There are three basic steps for determining profitability of a product:

• Step One: Determine the cost of all materials and labor needed to produce the proposed product.
• Step Two: Estimate the sales price you believe customers will pay for the product.
• Step Three: Subtract your cost to product the product from the sales price. The result will be the estimated profit.

Click the link below to download a worksheet that will guide you through the process of determining the potential profit on your product. If you are taking this course for a grade or for credit, you will turn in this assignment to your advisor or teacher.

Download Activity 3: Estimate of Potential Profit

After you've completed the form, click the race car to continue

©2007 Business Professionals of America. All rights reserved