Business Name
Date
Start-up Investment
What are your start-up expenditures? What are your cash reserves? Complete the table
below:
Item
Why Needed
Vendor
Cost
$
Total Start-up Expenditures
Emergency Fund (1/2 of startup expenditures)
Reserve for Fixed Expenses (covers 3 months of fixed expenses)
$
Note: Refer to Section 3.5 of this plan, p. 12
Total Start-up Investment
$
How much of this start-up investment can you afford to pay yourself? ______________
How much of the start-up investment will you need to finance? (Total Start-up
Investment) _____________________________________
What you can afford to pay) _________________
Page 1 of 5
Business Name
Date
Variable Expenses
List all the variable expenses, materials and labor, related to your unit of sale.
Materials
Material Description
Bulk Price
Bulk
Quantity
Quantity
per Unit
Cost per
Unit
$
$
Total Material Costs per Unit $
Cost of Labor per Hour
$
Labor
Time (in hrs) to make one
unit
hours
Total Labor Costs per
Unit
$
EOU
Labor Costs
$
TOTAL EOU
$
Material Costs
$
Economics of One Unit
Selling Price per Unit
Variable Expenses per Unit
Costs of Goods Sold
Materials
Labor
$
$
Total Cost of Goods Sold
$
Other Variable Expenses
Commission
Packaging
Other
Total Other Variable Expenses
$
$
Total Variable Expenses
$
Contribution Margin per Unit
$
Page 2 of 5
Business Name
Date
Fixed Expenses for One Month
Expense Type
Monthly Cost
Insurance
$
Salary
$
Advertising
$
Interest
$
Depreciation
$
Utilities
$
Rent
$
Other Fixed Expenses
$
Total Fixed Expenses
$
Explanation
Note: Estimate how many units (items you plan to sell or
services you plan to render) each month.
Revenue
Month
Units
January
February
March
April
May
June
July
August
September
October
November
December
TOTAL
Page 3 of 5
(Units * Selling Price)
Business Name
Date
Income Statement for First Year of Operations
A
B
C
REVENUE
Gross Sales
Sales Returns
$
selling price × units sold
selling price × units sold
$
selling price x units returned
B–C
L
Net Sales
VARIABLE EXPENSES
Costs of Goods Sold
Materials
Labor
Total Cost of Goods Sold
Other Variable Expenses
Commission
Packaging
Other
Total Other Variable Expenses
Total Variable Expenses
G+K
$
M
CONTRIBUTION MARGIN
D–L
$
D
E
F
G
H
I
J
K
N
O
P
Q
R
S
T
U
V
FIXED OPERATING EXPENSES
Insurance
Salaries
Advertising
Interest
Depreciation
Utilities
Rent
Other fixed expenses
Total Expenses
PRE-TAX PROFIT
X
Taxes (15%)
W
Y
NET PROFIT
$
cost of materials × units sold
$
cost of labor × units sold
$
E+F
cost of commission × units sold
$
cost of packaging × units sold
cost of other costs × units sold
$
H+I+J
cost of insurance × 12 months
$
cost of salaries × 12 months
cost of advertising × 12 months
cost of interest × 12 months
cost of depreciation × 12 months
cost of utilities × 12 months
cost of rent × 12 months
cost of other × 12 months
N+O+P+Q+R+S+T+U
$
M–V
$
W × 0.15
$
W–X
Page 4 of 5
Business Name
Date
Financial Ratios
Return on Sales (ROS):
Annual Net Profit
Total Annual Sales
$
$
=
%
≈
$
Return on Investment (ROI):
Annual Net Profit
Total Startup
Investment
$
$
=
%
≈
$
Breakeven Units (Monthly):
Fixed Monthly
Expenses
Contribution Margin
$
$
Page 5 of 5
=
≈
[value]
units