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By Tjitte de Werd at April 17 2019 10:39:59

3. Labor and material costs are also directly proportionate to sales. These are things that go directly into the making of the product or into doing the service. a. Labor cost is the actual direct labor used in the making of product or doing the service. The cost would also include all the fringe benefits like social security, payroll taxes, vacation pay, holidays, sick pay days, etc. b. Material costs are all the materials used in the making of product or in doing the service. In the lawn mower service as an example it would be the gasoline used in the mower and any other materials used directly in that service. For producing a product it would be all the materials used in the product that is sent to the customer including all the packaging materials.

A plan should include but is not limited to the following: 1. A statement of your business purpose 2. A description of your company 3. The goals of your company 4. The structure of the company (sole_proprietorship, partnership or corporation) 5. The product or service that you are selling 6. A market analysis of your product or service 7. Resources spent (time and money) 8. A financial plan to include financial statements 9. Information about the managing principals in the company 10. How you plan to manage and operate the company

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Develop Non_Capital Initiatives: Each project initiative should have a corresponding project plan that monitors whether it will be completed on_time and on_budget. The importance of the detailed project plan is to accomplish the following: a) identify all the steps to be completed; b) establish a realistic timeline for each step; c) identify and allocate the necessary resources for accomplishing the initiative; d) ensure that the initiative has been vetted for departmental inter_dependencies and potential conflicts; and e) ensure that the initiative is in alignment with the overall strategic plan.

I mentioned that the 'writing of a business plan' as one of the pivotal steps involved in setting up a successful business. By now you should understand the need for writing a business plan. Writing a business plan, for a traditional brick and mortar business, will probably take a lot of time. It may take up to 100 hours or even more. For obvious reasons, a new business needs to carry out a lot of research before a business plan can even be developed.

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