The First Step in Writing a Business Plan – Simple Math

Before you can write a business plan, you need to determine if you can ‘afford’ to go into business for yourself and still support yourself and/or your family.  Determine what finances are needed to support and grow your business.  Use this simplified table to envision the bottom line for your financial needs, and then determine your business’ financial requirements for all aspects, including marketing, advertising, and other actions to increase business and revenue. (Completed sample on next page; you can add in more lines on your spreadsheet as needed and where feasible.)

 

Financial Obligation(s)

Monthly

Annually

Weekly Income Required

Personal

$ $ $

Mortgage

     

Car/Transport.

     

Utilities/TV

     

Food/Groceries

     

Phone/Comms.

     

Property Taxes

     

Clothing

     

Insurance

     

Children

     

Etc.

     

Savings/Retirement

     

Sub-Total A =

$ $ $

     

Business

     

Property/Rent

     

Equipment

     

Utilities

     

Telephone/Comms.

     

Computers/Software

     

Insurance

     

Fuel/Commute/Gas

     

External SMEs

     

Office Overhead

     

Payroll

     

Advertising/Biz Dev.

     

Social Media/PR

     

Legal /HR

     

Sub-Total B =

$ $ $

     

Profit Margins

     

Profits needed

     

Business Reinvestment

     

Sub-Total C =

$ $ $

     

Grand Total (A+B+C) =

$ $ $

Completed Sample Sheet:

Financial Obligation(s)

Monthly

Annually

Weekly Income Required

Personal

$ $ $

Mortgage

2,000.00

24,000.00

461.53

Car/Transport.

250.00

3,000.00

57.69

Utilities/TV

358.00

4,296.00

82.61

Food/Groceries

640.00

7,680.00

147.69

Phone/Comms.

375.00

4,500.00

86.53

Property Taxes

231.66

2,780.00

53.46

Clothing

200.00

2,400.00

46.15

Insurance (Hth/Lfe/Hme/Car)

550.00

6,600.00

126.92

Children (child care)

450.00

5,400.00

103.84

Incidentals/Leisure/Hobbies

400.00

4,800.00

92.30

Savings/IRA

200.00

2,400.00

46.15

Sub-Total A =

$ 5,654.66

$ 67,856

$ 1304.87

     

Business

     

Home Office / Rent

50.00

600.00

11.53

Equipment

75.00

900.00

17.30

Utilities

25.00

300.00

5.76

Telephone/Comms.

75.00

900.00

17.30

Computers/Software

41.66

500.00

10.42

Insurance

100.00

1,200.00

23.07

Fuel/Commute/Gas

200.00

2,400.00

50.00

External SMEs

1,000.00

12,000.00

230.77

Office Supplies

120.00

1,440.00

27.70

Employ. Payroll (not owner)

600.00

7,200.00

138.47

Advertising/Biz Dev.

400.00

4,800.00

92.30

Social Media/PR

100.00

1,200.00

23.07

Legal /HR

100.00

1,200.00

23.07

Sub-Total B =

$  2,886.66

$  34,640

$  670.76

     

Profit Margins

     

Profits (owner salary)

2,500.00

30,000.00

576.92

Business Reinvestment

1,000.00

12,000.00

230.76

Sub-Total C =

$  3,500

$  42,000

$  807.68

     

Grand Total (A+B+C) =

$  12,041.32

$  144,496.00

$  2,783.31

 

The weekly budget needs grand total equals what you must make in revenue each week to meet or exceed what you need to sustain your personal life and your business.  Start writing your business plan using these general numbers to show (not tell) your bank or investors HOW you are going to make the minimum income every week.

 

Copyright, 2011, Dawn D. Boyer

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The First Step in Writing a Business Plan – Simple Math

Before you can write a business plan, you need to determine if you can ‘afford’ to go into business for yourself and still support yourself and/or your family.  Determine what finances are needed to support and grow your business.  Use this simplified table to envision the bottom line for your financial needs, and then determine your business’ financial requirements for all aspects, including marketing, advertising, and other actions to increase business and revenue. (Completed sample on next page; you can add in more lines on your spreadsheet as needed and where feasible.)

 

Financial Obligation(s)

Monthly

Annually

Weekly Income Required

Personal

$ $ $

Mortgage

     

Car/Transport.

     

Utilities/TV

     

Food/Groceries

     

Phone/Comms.

     

Property Taxes

     

Clothing

     

Insurance

     

Children

     

Etc.

     

Savings/Retirement

     

Sub-Total A =

$ $ $

     

Business

     

Property/Rent

     

Equipment

     

Utilities

     

Telephone/Comms.

     

Computers/Software

     

Insurance

     

Fuel/Commute/Gas

     

External SMEs

     

Office Overhead

     

Payroll

     

Advertising/Biz Dev.

     

Social Media/PR

     

Legal /HR

     

Sub-Total B =

$ $ $

     

Profit Margins

     

Profits needed

     

Business Reinvestment

     

Sub-Total C =

$ $ $

     

Grand Total (A+B+C) =

$ $ $

Completed Sample Sheet:

Financial Obligation(s)

Monthly

Annually

Weekly Income Required

Personal

$ $ $

Mortgage

2,000.00

24,000.00

461.53

Car/Transport.

250.00

3,000.00

57.69

Utilities/TV

358.00

4,296.00

82.61

Food/Groceries

640.00

7,680.00

147.69

Phone/Comms.

375.00

4,500.00

86.53

Property Taxes

231.66

2,780.00

53.46

Clothing

200.00

2,400.00

46.15

Insurance (Hth/Lfe/Hme/Car)

550.00

6,600.00

126.92

Children (child care)

450.00

5,400.00

103.84

Incidentals/Leisure/Hobbies

400.00

4,800.00

92.30

Savings/IRA

200.00

2,400.00

46.15

Sub-Total A =

$ 5,654.66

$ 67,856

$ 1304.87

     

Business

     

Home Office / Rent

50.00

600.00

11.53

Equipment

75.00

900.00

17.30

Utilities

25.00

300.00

5.76

Telephone/Comms.

75.00

900.00

17.30

Computers/Software

41.66

500.00

10.42

Insurance

100.00

1,200.00

23.07

Fuel/Commute/Gas

200.00

2,400.00

50.00

External SMEs

1,000.00

12,000.00

230.77

Office Supplies

120.00

1,440.00

27.70

Employ. Payroll (not owner)

600.00

7,200.00

138.47

Advertising/Biz Dev.

400.00

4,800.00

92.30

Social Media/PR

100.00

1,200.00

23.07

Legal /HR

100.00

1,200.00

23.07

Sub-Total B =

$  2,886.66

$  34,640

$  670.76

     

Profit Margins

     

Profits (owner salary)

2,500.00

30,000.00

576.92

Business Reinvestment

1,000.00

12,000.00

230.76

Sub-Total C =

$  3,500

$  42,000

$  807.68

     

Grand Total (A+B+C) =

$  12,041.32

$  144,496.00

$  2,783.31

 

The weekly budget needs grand total equals what you must make in revenue each week to meet or exceed what you need to sustain your personal life and your business.  Start writing your business plan using these general numbers to show (not tell) your bank or investors HOW you are going to make the minimum income every week.

 

Copyright, 2011, Dawn D. Boyer



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