Straight answer

How to read ONE’s numbers

ONE shows you figures: what an order might keep, how long a budget might last, what a month could look like. Here is exactly what those are, and what they are not.

They are arithmetic on your assumptions

Every number ONE shows comes from two places. The first is what you typed in — your price, what a unit costs you, how many hours you have, what you can afford to lose. The second is published benchmarks: card processing rates, USPS commercial postage, the median return rate for online retail, typical advertising costs for a category. Where ONE uses one of those, it names the source and the year on the same screen, so you can check it or disagree with it.

Change your price by a dollar and every figure moves. That is the point — it is a model you are meant to argue with, not an answer you are meant to accept.

They are not a forecast, and they are not a promise

Nobody can tell you what your business will earn. Not ONE, not a consultant, not a course. A model that says an order keeps $34 is telling you what the arithmetic produces if your assumptions hold — and most first assumptions do not hold. Your costs will be higher than you planned, your first customers will be more expensive to find than the benchmark, and something will go wrong that is not in any spreadsheet.

Most new businesses earn less than their plan says. About half of new US establishments are no longer trading five years after they open, and that share has sat between roughly 50 and 56 per cent across every cohort the Bureau of Labor Statistics has followed since the mid-1990s — through good economies and bad ones. It is not a statistic about people who did it wrong. It is the base rate.

ONE does not claim its users make money

This is the part most tools are cagey about, so plainly: ONE has no data on what its users earn. It is new, and it does not have a track record to report. Any tool that tells you what its customers typically make should be able to show you the figures behind that, including the people who made nothing — the FTC requires exactly that of anyone making earnings claims, and considers a handful of success stories to be no substantiation at all. ONE has no such figures, so it makes no such claim, and you should be wary of anyone in this category who does.

What ONE is actually useful for

Finding out that the numbers do not work before you spend the money. The most valuable thing ONE does is not projecting a good outcome — it is showing you, in about a minute, that a product priced at $28 which costs you $19 delivered cannot absorb a $37 cost of finding each customer. That conclusion is robust even when the forecast is not, because it holds across every plausible set of assumptions rather than one.

Treat a favourable projection as a hypothesis to test cheaply, and an unfavourable one as a warning worth taking seriously. The arithmetic is much better at ruling things out than at promising things.

None of this is professional advice

ONE is software. It is not an accountant, a lawyer, a tax adviser or a financial adviser, and nothing it produces is a substitute for one. That includes the legal checklist, which is a prompt to go and find out, not a statement of what the law requires of you. Before you sign a lease, take on debt, hire anyone or make a tax election, talk to somebody qualified in your state.

Sources: US Bureau of Labor Statistics, Business Employment Dynamics, establishment survival rates (cohorts 1994–2015). Federal Trade Commission, guidance on substantiating earnings claims. The benchmarks behind individual figures are cited on the screens that use them.

Terms · Privacy