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Business Plan

To determine if this business could be profitable for you, we have put together the following business plan for your use.

First compile the following information:

What are your expenses?

  • Tax preparation
  • Telephone (x12 months)
  • Internet (x12 months)
  • Cell phone (x12 months)
  • Miscellaneous office supplies (pens, binder clips, etc.)
  • Advertising memberships
  • Insurance/Bond (if per term of commission divide by term of commission for annual amount)
  • Commission fee (if per term of commission divide by term of commission for annual amount)
  • Stamp/Seal (if per term of commission divide by term of commission for annual amount)
  • Journals per year (if applicable)

Cost of equipment: Equipment is usually expensed out on income tax in the first year. Let’s give some time for recouping the cost of equipment by spreading it out over the term of notary commission.

  • Cost of computer (divide by term of commission for annual amount)
  • Cost of laser printer (divide by term of commission for annual amount)
  • Cost of fax machine (divide by term of commission for annual amount)

TOTAL ANNUAL EXPENSES………………………………………………………….$___________________

Next, determine the costs per signing.

  • Cost of toner
  • Yield of toner (the toner box should indicate how many pages can be printed per toner cartridge)
    (cost of toner divided by yield for a per page figure)
  • Average amount of pages printed per signing (a loan package is usually at least 125 pages x two copies)
    Multiply cost per page x # of sheets per signing for a cost per signing $____________
  • Cost of Box of letter size paper
  • Box of letter size paper has 5,000 sheets (divide cost of box by 5,000 for a per sheet cost)
  • Average amount of letter size pages printed per signing.
    Multiply cost per page x # of sheets per signing for a cost per signing $____________
  • Cost of Box of legal size paper
  • Box of legal size has 4,ooo sheets (divide cost of box by 4,000 for a per sheet cost)
  • Average amount of legal size pages printed per signing.
    Multiply cost per page x # of sheets per signing for a cost per signing $____________
  • Average miles traveled for a signing (round trip)
  • Current IRS mileage deduction is $.54/mile for 2016. This should cover all expenses incurred in operating a vehicle including gas. Multiply average miles per signing x .54 for total auto costs per signing.

TOTAL COST PER SIGNING…………………………………………………………………………….$______________________

  • Average signings completed or expected to complete in a year. ___________
  • Average time spent on a signing (include printing, actual signing, driving time, fax back time (if applicable), status reporting time, all time spent from start to finish in hours)                                                              ___________
  • Average fee per signing                                                                    $ ___________

NOW, LETS RUN OUR CALCULATIONS:

Total Annual Expenses $__________ / # of signings in a year =  $_____________

+ Total Costs per signing $__________ = Total expenses per signing $___________

Avg fee per signing $___________ – Total expenses per signing $ _____________

= Net profit per signing $____________ .

Net profit per signing $ __________ / Average time spent on a signing _________  = hourly rate per signing $ __________.

This will give an hourly rate after expenses. Items not specifically listed or accounted for in these calculations include:

  • Business portion of utilities for a home-based business
  • Income tax
  • Babysitter (if applicable)

If the final hourly rate is negative or too low for your liking, alter the ‘Fee per signing’ and recalculate until you reach your desired hourly rate. This should help you to realize whether you would be profitable as an NSA ans where your fees need to be to do so. Once you have found your desired hourly rate through adjusting the ‘Fee per signing’, review discussions on recommended fees. If you find that the fee you come up with is substantially higher it will become apparent whether your desired fees are realistic.

 

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