Year 2 Year 3 Projected Sales Revenue (from previous page) Projected Variable Expenses ____% of Sales = Expenses or Units x Cost/Unit = Expenses Projected Fix Expenses (from previous page) Total Expenses (Fixed and Variable) Projected Profit (Loss) (Revenue Expenses = Profit) – Less: Loan Payments: - Start-up/Expansion Expenses - Building Mortgage - Equipment Loan Profit/Loss after Loan Payments Notes: 1. Depending on the type of business, the term can mean a physical product, an hour of service, a project or job, etc. “unit” 2. When a company will have multiple prices for its products or services, the price per can be a simple average of all the various prices (which assumes “average unit” equal quantities of each product will be sold) or a weighted average based on the projected of products or services to be sold. “mix” 3. Variable expenses are expenses that vary directly with sales, such as the cost of buying a product from a supplier, hiring an independent contractor to perform part of the service. Another term for variable expenses is of “cost goods sold”. Variable Expenses Year 2 Year 3 Projected Unit Sales (see Note 1) Variable Expenses per Unit (see Note 3) Projected Variable Expenses Appendix B Business Plan Outline Financial Plan Details – – Combined Sources & Uses of Funds and Cash Flow Statements
Year 2 Year 3 Projected Sales Revenue (from previous page) Projected Variable Expenses ____% of Sales = Expenses or Units x Cost/Unit = Expenses Projected Fix Expenses (from previous page) Total Expenses (Fixed and Variable) Projected Profit (Loss) (Revenue – Expenses = Profit) Less: Loan Payments: - Start-up/Expansion Expenses - Building Mortgage - Equipment Loan Profit/Loss after Loan Payments Notes: 1. Depending on the type of business, the term “unit” can mean a physical product, an hour of service, a project or job, etc. 2. When a company will have multiple prices for its products or services, the “average price per unit” can be a simple average of all the various prices (which assumes equal quantities of each product will be sold) or a weighted average based on the projected “mix” of products or services to be sold. 3. Variable expenses are expenses that vary directly with sales, such as the cost of buying a product from a supplier, hiring an independent contractor to perform part of the service. Another term for variable expenses is “cost of goods sold”. Variable Expenses Year 2 Year 3 Projected Unit Sales (see Note 1) Variable Expenses per Unit (see Note 3) Projected Variable Expenses Appendix B – Business Plan Outline – Financial Plan Details Combined Sources & Uses of Funds and Cash Flow Statements