I have used a similar formula for a long time. 30K x # of employees x 2 to get the gross profit needed to operate. Adjust revenues to match the gross profit of

I have used a similar formula for a long time. 30K x # of employees x 2 to get the gross profit needed to operate. Adjust revenues to match the gross profit of the industry. The author states 50% profit for companies, but some are much lower and some are higher. I have been self-employed for 20 years and most of my friends own small businesses (non-tech). This formula has worked roughly for all of them.