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Write the Plan!

Answer the following questions to write the financial plan portion of your business plan. This portion of the plan has the same contents, whether you're writing a startup, full, or internal plan.

Creating Your Pro Forma

1:Do you have any startup expenses? What are your startup equipment purchases, utility deposits, down payments, personnel costs prior to opening (including payroll expenses), legal and professional fees, licenses and permits, occupancy costs of materials and/or build outs, initial supplies, and initial advertising and promotional costs? Place them in to the zero month(s) of your pro forma (the months where you incur expenses but have not opened your doors for business).
2:What is your gross sales income or other revenue per month from your products or services? Include all the income generated by the business and any additional revenue sources.
3:What are your costs of goods sold per month? Include here the actual cost of the products, materials, or ingredients you purchase or manufacture for resale.
4:What is your gross profit or gross revenue per month? Determine this by calculating the difference between your gross income and your cost of goods sold, and list it in dollars, as a percentage, or both. As a percentage, the gross profit is always stated as a percentage of revenue.
5:What are your variable expenses per month (variable expenses are those which change based on the amount of business you do, such as advertising, sales commissions, freight, supplies, and so on)?
6:What are your fixed expenses per month (expenses paid at the same rate, regardless of the volume of business, like rent, utilities, salaries and wages, and so on)?
7:What are your total expenses per month (fixed plus variable expenses)?
8:What is your net profit or loss per month (gross profit or gross revenue minus total expenses before taxes)?



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