Apologies for the distressing visual image I’ve just given you but getting naked best describes what I’ve just done – I’ve just published 6d6’s business spreadsheet. Exposing all our production costs and sales figures to the world.
Phase 1. Steal Underpants
Publishing this is the first part of our
three phase plan to reach our goal of being a financially viable business by the end of 2012. By placing all this information into open, so anyone can read it, we preparing the ground for the next step – the discussion.
We will be running a number of discussions here and on Google+ with the aim of crowd-sourcing ideas about how we can reach our goal. This will be mostly focused on making more people aware of 6d6, both on and offline, but will also include issues such as production costs and the balance between physical and digital products. To make these discussions meaningful, everyone needs the same data I have.
Understanding the Spreadsheet
Each sheet in the spreadsheet has a particular set of information. The most interesting ones for the casual reader are:
- Graphs – The key graph shows how we sold and earned in 2011 and what we need to do in 2012. The difference is significant.
- Sales By Product – A breakdown of how many we sold of each product.
- Product Costs And Margins – How much it costs to produce our products and our profit margin on each.
A Pinch of Salt
As far as the sales figures go, everything is accurate. However the costing figures are based on the last print run we did and for our new printer. This does not reflect how much previous print runs cost us. They also do not preciously reflect our future production costs which will (hopefully) go down as we out-source production.
The projected figures are not to be trusted except the £12000 income target for 2012. This is really my target but everything that is extrapolated from this is highly subjective.
A Ball Park
The point of the spreadsheet is to give me, the 6d6 Crew and everyone else an idea about the figures. To give us a goal to aim for and a measuring stick to assess our progress. We do not need to sell exactly 131 copies of 6d6 Core that the spreadsheet predicts but we do need to sell somewhere in the region of 125 – 175 to make this work.
I will dig into the figures more depth with a series of posts over the next few days but in the meantime, feel free to comment and ask questions below or on G+.