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. 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.
There can be many ways to approach the writing and editing of a business plan. We will discuss some of the basics about the structure and content of a good plan. One of the keys to creating a great plan that meets the needs of investors, banks, and even grant providers, is to make sure that you understand your business well, whether it's a start_up company or one that has been in operation for many years. Professional business plan consultants help owners, directors and founders to develop a better understanding of their business in order to assist in providing answers to questions that will create a solid business and financial plan for any purpose.