Why do you need to know these percentages? As your sales increases or decreases, your material cost, labor cost, and variable expenses will track accordingly. They will track very close to the same % as your current business. As an example, let's say your current sales is averaging 贄ꯠ per month and your material cost is averaging ฤꯠ per month. That's 20% of your sales (ฤꯠ ÷ 贄ꯠ = 20%). So, what would your material cost be if your sales were averaging 赨ꯠ per month? It would still be 20% but it would be 20% of 赨ꯠ or ุꯠ. So with these percentages, you can project your material, labor and variable expenses. See how it works?
IMPress Action Checklist: Below is a list of the steps that will help you put together your business plan. Check off each step as you complete it to keep track of your progress. Purchase business plan software or download a template. Read over the business plan sections to decide what data you have, what data you need. Gather data via the internet, phone interviews, print material. Fill in the plan's sections. Write the Executive Summary. Print and Bind Your Plan. Every day, millions of businesses spring up, both online and offline. These businesses run the gamut of categories, from spas to sneaker stores, accounting firms and accessory websites. Business planning is the first step in creating a secure future for your company.