By Emy Treurniet at May 02 2019 15:56:50
Make sure you are researching each point of your budget, make sure that you are giving it context and it makes proper sense within your overall plan.
You may find that the easiest part is the actual writing of the plan. The real work comes in the data_gathering, which may take you a hundred hours or more, depending on what you already know or have researched. If your new venture is in an area where you've been working, you may already know about your customers, your suppliers, your marketing plan, your organizational structure, your financial and cash flow needs, equipment, inventory, and so on. If you know all of these except for Marketing, say, then this is where you will need to invest some time and effort. You can find a wealth of information by utilizing the traditional data sources such as chambers of commerce, major cities' websites, trade associations, the US Census Bureau, trade journals, magazine and online articles and advertising, etc. Performing keyword searches on Google, or Ask will bring up websites to check out.
With this information you can actually predict not only what your sales will be, but you can see how much your fixed and variable expenses will be, what your labor cost will be, your material cost, and your profit. 1. So let's first look at what exactly are fixed expenses? They are exactly what they say they are; they are fixed. This simply means these are expenses that are ongoing whether you have a lot of sales or Ŕ" sales. They are expenses like utilities, taxes, rent, salaries other than the wages used in the making of the actual product or doing a service, business fees, telephone, etc. See how these expenses would continue on even if you have 0 sales? Any expenses that fall into this category are fixed expenses. Far too many small business owners never divide their expenses into fixed and variable. As a matter of fact, if you could have a business that had Ŕ" fixed expenses; this would be the best of all worlds, why? If you had Ŕ" sales, you would have Ŕ" expenses. So the closer you could get to this the better you would be.
They are like fingerprints; no two are alike, even within the same organization. One further point, opinions about what makes a good finished product are like noses_everybody has one. The ones that work and prove to be executable are the best. With this in mind, let me offer my views about business plans at a macro level having written a sizeable number of plans for internal and external applications. One other point, a business plan can build a team quicker than any formal team building activity.