Financial Worksheet

This is an extremely important aspect of your business plan. Unfortunately for many business owners, it is often overlooked. Many people skip this part of planning because it is not the most exciting part of the process. Basically, you will be drawing up a budget for the startup of the business. How much will the business cost to open. How much money is it projected to make? How long will it take to make a profit? Be carefull here! Many businesses fail because people don't understand that a business does not magically make a profit the day you open the doors. You need to plan to sustain losses for at least the first six months of your business. Some businesses can "float" themselves much sooner than others.

STEP #1: Your startup cost:

What will it cost you to start your business up?

What equipment will you need to buy? Do you need computers, ovens, chairs, desks, etc?

What will it cost to remodel your premises? To find remodel cost multiply your square footage by 13.33.

STEP #2: Calculate a total monthly expense with this method:

Cost of Premises: Rent, or Mortgage

Utilities: Electric, Gas, Water, Phone, Internet

• Once you have decided on a building, you will need to calculate your utilities based on square footage.
• Electric: .33 x square feet
• Gas: .05 x square feet
• Water: .08 x square feet
• Phone: $50 per phone line
• Internet: $50 per connection

Employee Cost

• Number of employees x How long will they work x How much will they make? >>> What is your total employee cost per month?

• You will also need to add in another 40% for unemployment insurance, social security and benefits.

Marketing Plan:

• Total from Marketing Worksheet

   

Equipment Rental

• Any equipment you must rent or lease. Examples include vehicles, heavy machinery, etc.

   

   

• Any services you must rent or lease. Examples include lawn services, dry cleaning, etc.

   

   

STEP #3: Estimate your total monthly sales once your business is established:

What do you sell? You can group items into broad categories if you like.

How many units will you sell? You can estimate each category.

STEP #4: Find your future monthly profit.

The items you sell are not free. You must deduct the cost of buying them from the manufacturer. If you make the items you are selling you must deduct the cost of the raw materials.

If you are reselling items, subtract 60% from your monthly sales to determine your profit. If you make the items you sell, subtract 30% from your sales to find your monthly profit.

Finally, you will need to take this amount and subtract your monthly expenses. This will be your total profit or loss.

Now how much of this will your partner get?