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GEM SOURCE
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REAL-TIME CONTROL SYSTEMS
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Company Profile
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Producing
a Brighter
Opportunity
Simultaneously.
AT GSRCS, We
improve your speed up transformation by extending complete technology and
planning proficiency and end-to-end genius organization facilities to achieve a
viable advantage.
As Expertise & Capacity are the major
supporters of modernization and the greatest issues in today’s worldwide
markets, GemSource is ready to conduct your next generation transformation by setting
jointly the proper expertise base for you and advance you implementable genius
at range.
As an International Bright Business mentor,
we associate with clients all through with our five service lines, within your
fullest collection of requirements: from Expertise Management, Capacity
administration and preparation, accessing, and results towards extensive
development implementation. We provide on your expertise and capacity demands
of today, look forward to your projects of tomorrow.
prominent over transformation
Technology Consulting
GSRCS delivers value enhanced
point-to-point resolutions by influencing proficiency and Next Generation
business capability across productions with a profound appreciation of our
consumers’ organizations.
Capacity Building Services
GSRCS delivers adaptable and ascendable
intelligence services to help consumers accomplish their task-significant
expertise and Next Generation business developments.
Technical school
GSRCS connects the essential talents by
supplying sharp advantage upgrading and rebuilding to advance Next Generation
revolution, prospect-verification establishments’ capacity, and push
implementation.
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The process of thinking and
writing the plan provides clarity for the business.
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If capital is needed from
outside sources, investors want to see a plan that demonstrates a solid
understanding and vision for the business.
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The plan will help prioritize
tasks that are most important.
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With growth, the plan offers a
common understanding of the vision to new leaders.
A simple business plan for a start-up
service company can be completed rather quickly. Keeping in mind who the
intended audience is, write simply. The plan needs to be understandable,
readable, and realistic.
This template is organized into seven
sub-plans or sections to be completed.
1.
Executive Summary
2.
Company Overview
3.
Business Description
4.
Market Analysis
5.
Operating Plan
6.
Marketing and Sales Plan
7.
Financial Plan
It is recommended to complete the
Executive Summary last, after all of the other sections have been completed.
As information is filled in, from the Company Overview to the Financial Plan,
the writing should tell the story of the motivation and vision behind the
business. Be sure to include what will make the business successful, how
success will be achieved, and how success will be measured.
It is important to keep the business plan
updated in order to see progress, celebrate success, and adjust where issues
arise. This is best done on a quarterly, if not monthly, basis.
The
Executive Summary should be written last after the remainder
of the plan has been finished. It is an overview (with a suggested length of
no more than one page) of the business, including the problem the business
aims to solve, why this business’ solution is different, the business’ ideal
customer, and the expected results. The Executive Summary should provide a
high-level and optimistic description of the company.
If the business requires outside
investment or external investors, include how much is needed, how it will be
used, and how it will make the business more profitable. Think of this section
as the first thing a potential investor reads, thus, it must capture their
interest quickly.
Suggested headings to organize this
business plan include the following.
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Opportunity: What problem will the business solve?
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Mission: What problem will the business solve?
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Solution: How will the service uniquely solve the problem identified?
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Market focus: What market and ideal customers will the business target?
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Competitive advantage: How does the business intend to succeed against its competitors?
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Ownership: Who are the major stakeholders in the company?
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Expected returns: What are the key milestones for revenue, profits, growth, and
customers?
The Company Overview is a brief summary of
the intended business, including what it uniquely delivers, the mission, how
it got started, market positioning, operational structure, and financial
goals. After reviewing this section, the reader should have a broad
understanding of what the business is setting out to do and how it is
organized.
This section is not meant to be lengthy.
Keep it short and succinct. This is the snapshot of the business. The type of
business will determine what of the following sections will be required for
the business plan. Only include what is needed to properly represent the
business and remove anything else.
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Company summary: This is the introductory section to the company, also known as
the ‘elevator pitch’ of what the company stands for and is setting out to do.
Include the company’s goals and some of the near-term objectives. Even if it
is a small, service-oriented company, developing a summary is an important
step to explain and focus the core business.
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Mission statement: This is a concise statement on the guiding principles of the
company and what the company aims to do for customers, employees, owners, and
other stakeholders.
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Company history: This provides the back story, especially the personal story,
of why the business was founded. Use this section to give the overarching
history of the company from its start and bring the reader up-to-date on where
the company is now in terms of sales, profits, key services, and customers.
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Markets and services: This outlines the target market and related needs that the
company will address. Include brief descriptions of offered services and
targeted markets and customer types. This section can be a general overview as
more details will be suggested in a later section of this plan.
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Operational structure: This describes the operational details of the business. List
any potential employees needed on the payroll to make the business run.
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Financial goals: This describes the start-up capital needed, projected revenue
and profits, forecast, and budget of the business.
This section will first frame the business
opportunity and should answer the question: what problem(s) is the company
trying to solve? Use a case example to describe the customers’ pain point and
how it is solved today. If the business’ service addresses something the
market has yet to identify as a problem (for instance, a new mobile app or a
new clothing line), then also describe how the business’ solution reduces
stress, saves money, or brings joy to the customer.
After framing the opportunity, describe
the service in detail and how it is the solution the business offers, how it solves
that problem, and what benefits customers will receive.
This section also describes in more detail
how the services will be rendered and the pricing structure (e.g., fixed rate
versus an hourly fee). Describe how the company plans to differentiate from
its competitors. What is the target market and how can the customer capitalize
on your unique offering?
Depending on the type of business, the
following sections may or may not be necessary. Only include relevant sections
and remove everything else.
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Opportunity: Describe the current market for the business’ offered service.
At a high level, what is the market and who are its participants; is it
business customers or consumers; what is the specific geography, etc.? More
details on the market will be provided in the next section of the plan. Next,
describe the current state of available services and how the business will
offer better. Also discuss any additional services the company plans to offer
in the future.
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Product overview: Describe the service offerings of the business in as much
detail as possible. If it is effective to include pictures, this would be a
good place to place them.
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Key participants: Identify any strategic partners in the business, such as
critical suppliers, distributors, referral partners, or any others. In some
businesses, products are custom-made and any break in their supply will impact
the business. There may be key contributors to the services offered, so it is
important to identify them.
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Pricing: Provide pricing of the service, gross margin projects, and
upgrade paths. Describe why the company’s pricing will be attractive to the
target market. Have a gauge on the competitor’s pricing and explain how the
business’ service is unique to justify its pricing structure.
o Note the difference between working hours and billable hours. All
working hours are not billable. If the business has employees with differing
skill levels (for example, in a law practice, there are associates,
paralegals, lawyers, partners, etc.), indicate the various billing rates.
o Communicate rates clearly to clients and customers. If there are
potential additional fees which will be passed on to clients or customers,
define and establish them up front.
The Market Analysis provides the reader
with an understanding of how well the business knows and understands its
market and if it is big enough to support the business objectives. This
section provides an overview of the industry that the business will
participate in. As this section is narrowed down to the ideal customer based
on the business strategy, the plan will define the target market. A detailed
description and sizing of the target market will help the reader understand
the market value the business is pursuing (the number of potential customers
multiplied by the average revenue for the product or service).
In defining the target market, the plan
will identify key elements such as geographic location, demographics, buyer
characteristics, the target market's needs, and how market needs are currently
being met. If there are any direct competitors, explain how the company’s
service compares to the competitors in terms of solving the consumers’
problems.
This section may also include a Strengths,
Weaknesses, Opportunities, and Threats (SWOT) Analysis as necessary, to better
assess the business’ position against the competition.
Depending on the type of business, the
following sections may or may not be necessary. Only include what is need and
remove everything else.
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Industry type: Begin with the broader descriptions of the market opportunity.
For instance, if the intended business is a travel agency, the industry type
would be service industry. In this particular market, the global revenues are
projected to exceed $183 billion, but the local agency will have a much
smaller market. Identify the potential clientele in the company’s local
geography that might fit into the target demographic group. This section will
also identify any industry regulations and evaluate trends in market growth
and stability.
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Market segmentation: This section defines the main market segments and those the
business is targeting now. A market segment is a group of people (or other
businesses) within the industry, identify smaller segments, such as luxury
travel or exotic cruisers. The market can also be segmented by criteria such
as quality, price, range of products, geography, demographics, and others. A
few other elements to consider answer questions such as: Is the segment
growing, shrinking, or will it be flat for the next few years? What percentage
of the market will be reachable? What share of the market is anticipated
within the next 2-3 years? Graphics are best used in a section like this to
either show growth (line graph) or percentages of markets or groups (pie
chart).
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Competition: All businesses compete in one way or another. It may be with
specific, direct competitors or it may be with the way customers have been
doing things for a long time. When identifying the competition, identify who
else is providing services to solve the same problem the business seeks to
address. What are the business’
advantages over these competitors? How will the company’s voice be heard over
the noise of competitors? Sometimes a business plan includes a matrix of
features and compares how each business offers or does not offer those
features. This section reflects how the company’s solution is different and
better suited for the identified target market compared to the competition.
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SWOT analysis: A SWOT analysis may be included by completing the boxes below
to assess the business’ current environment’s strengths and weaknesses
(internal) and opportunities and threats (external). This is a good exercise
to go through on an annual basis. After completing the analysis, provide
thoughts on: how the business’ strengths can help maximize opportunities and
minimize threats; how its weaknesses can slow the company’s ability to
capitalize on the opportunities; and how the business’ weaknesses could expose
it to threats.
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STRENGTHS
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Advantage
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Capabilities
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Assets, people
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Experience
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Financial reserves
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Value proposition
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Price, value, quality
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WEAKNESSES
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Disadvantages
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Gap in capabilities
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Cash Flow
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Suppliers
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Experience
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Areas to improve
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Causes of lose sales
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OPPORTUNITIES
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Areas to improve
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New segments
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Industry trends
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New products
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New innovations
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Key partnership
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THREATS
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Economy movement
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Obstacles faced
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Competitor actions
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Political impacts
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Environmental effects
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Loss of key staff
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Market demand
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Additionally, it is necessary to outline
how the company currently and will continue to develop and maintain a loyal
customer base. This section includes management responsibilities with dates
and budgets and making sure results can be tracked. What are the envisioned
phases for future growth and the capabilities that need to be in place to
realize growth?
The operating plan describes how the business
works. Depending on the type of the business, important elements of this plan
should include how the company will bring services to market and how it will
support customers. It is the logistics,
technology, and basic blocking and tackling of the business.
Depending on the type of business, the
following sections may or may not be necessary. Only include what is needed and remove
everything else. Remember: try to keep
the business plan as short as possible.
Excessive detail in this section could easily make the plan too long.
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Order fulfillment: Describe the company’s procedures for delivering services to
its customers. As a service company, determine how to keep track of the
customer base, form of communications, and how best to manage sales and data.
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Payment: Describe the standard payment terms and the payment methods
accepted. Describe the pricing plans (one-time service fees, hourly-based
fees, markups, and any other fees) and any impact on cash flow.
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Technology: If technology is critical to the business, whether it is part
of the service offering or is fundamental to delivering a service, describe
the key technologies used that are proprietary. If the business data (company
or customer) is at risk, describe the data security plan in place, as well as
any backup or recovery in the case of a disaster or outage.
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Key customers: Identify any customers that are important to the success of
the business due to a partnership, volume, or pathway to a new market. Also
identify any customers who bring in more than 10% of the company’s revenues.
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Key employees and organization: Describe unique
skills or experiences that are required of the current team. If necessary,
describe any proprietary recruiting or training processes in place. List key
employees that are necessary for success. Include an organization chart to
support this section.
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Facilities: Describe the type of business facility, whether leased, owned,
or a shared business premises. Provide a listing of business locations, their
purpose, and future plans for these facilities. If there are no facilities,
and the business plans to buy or lease them, include that in this plan.
Promoting the business, whether through
generating leads or traffic to a website or store, is one of the most
important functions of any business. In this section of the plan, provide
details of intended marketing of the business. Describe the key messages and
channels used for generating leads and promoting the business. This section
should also describe any sales strategy. Depending on the type of business,
the following sections may or may not be necessary. Only include what is
needed and remove everything else.
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Key messages: Describe the key messages that will elevate services in the
target customers’ eyes. If there is sample collateral or graphical images of
some messages, include them.
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Marketing activities: Which of the following promotion options provide the company
the best chance of product recognition, qualified leads, store traffic, or
appointments?
o Media advertising (newspaper, magazine, television, radio)
o Direct mail
o Telephone solicitation
o Seminars or business conferences
o Joint advertising with other companies
o Word of mouth or fixed signage
o Digital marketing such as social media, email marketing, SEO, or
blogging
o Provide limited free consultations (such as free job pricing for
Contractors, free landscaping consultation for landscapers, or free pricing
opinions for real estate agents)
o Sponsor local sports teams or other community events
o Give free informational talks either at the business offices or for
local businesses offering complementary services (such as a real estate agent
providing seminars about preparing a home to bring to market)
o Do free work for local non-profits (such as an ad agency designing
a local farmer’s market’s website for free)
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Sales strategy: If needed, what will be the sales approach? Will there be
full-time commissioned sales people, contract sales, or another approach? Many
one-on-one service businesses are heavily reliant on word of mouth. Take this
into account when developing the sales strategy.
Creating a financial plan is where all of
the business planning comes together. Up to this point, the target market,
target customers, and pricing have all been identified. These items, along
with assumptions, will help estimate the company’s sales forecast. The other
side of the business will be what expenses are expected. This is important on
an ongoing basis to see when the business is profitable. It is also important
to know what expenses will need to be funded before customer sales, or the
cash they generate, is received.
At a minimum, this section should include
estimated start-up costs and projected profit and loss, along with a summary
of the assumptions being made with these projections. Assumptions should
include initial and ongoing sales, along with the timing of these inflows.
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Projected start-up costs: The table below
shows a sample of ongoing and one-time cost items that the business might need
in order to open. Many businesses are paid on credit over time and do not have
cash coming in immediately. It is necessary to make assumptions about how many
months of recurring items, in addition to one-time expenses, to estimate when
cash will begin to flow into the company. To begin with, the company will have
to fund out of savings or an initial investment. There is a blank table in the
Appendix to complete potential start-up cost projections.
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START-UP COSTS
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Your Office-Based Agency
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January 1, 20xx
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COST ITEMS
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MONTHS
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COST/ MONTH
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ONE-TIME COST
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TOTAL COST
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Advertising/Marketing
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3
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$300
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$2,000
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$2,900
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Employee
Salaries*
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4
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$500
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$2
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$2,002
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Employee Payroll
Taxes and Benefits
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4
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$100
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$1,500
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$1,600
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Rent/Lease
Payments/Utilities
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4
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$750
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$2,500
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$5,500
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Postage/Shipping
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1
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$25
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$25
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$50
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Communication/Telephone
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4
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$70
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$280
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$560
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Computer
Equipment
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$0
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$1,500
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$1,500
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Computer Software
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$0
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$300
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$300
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Insurance
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$0
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$60
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$60
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Interest Expense
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$0
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$0
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$0
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Bank Service
Charges
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$0
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$0
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$0
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Supplies
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$0
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$0
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$0
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Travel &
Entertainment
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$0
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$0
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$0
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Equipment
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$0
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$2,500
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$2,500
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Furniture &
Fixtures
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$0
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$0
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$0
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Leasehold
Improvements
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$0
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$0
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$0
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Security
Deposit(s)
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$0
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$0
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$0
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Business Licenses/Permits/Fees
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$0
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$5,000
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$5,000
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Professional
Services - Legal, Accounting
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$0
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$1,500
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$1,500
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Consultant(s)
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$0
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$0
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$0
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Inventory
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$0
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$0
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$0
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Cash-On-Hand
(Working Capital)
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$0
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$1,000
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$1,000
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Miscellaneous
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$0
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$2,000
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$2,000
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ESTIMATED START-UP BUDGET
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$26,472
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*Based on part-time employees. This may change
once you hit your growth benchmark.
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Projected
profit and loss model: The model below shows a sample of the projections a small
business is forecasting for their first 12 months of operations. The top
portion of the table shows projected sales and gross profit. This is a good
place to begin creating the company’s sales forecast. The next section
itemizes the recurring expenses the business is projecting for the same
months. These should be consistent with the estimated start-up costs completed
in the prior section. At the bottom of this model, it will possible to see
when the company is becoming profitable and what expense items are the most
impactful to its profitability. There is a blank table in the Appendix to
complete the business’ own start-up cost projections.
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START-UP COSTS
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Your Office-Based Agency
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January 1, 20xx
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REVENUE
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JAN
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FEB
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MAR
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APR
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MAY
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JUN
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JUL
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AUG
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SEP
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OCT
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NOV
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DEC
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YTD
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Estimated Sales
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$5,000
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$13,000
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$16,000
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$7,000
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$14,500
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$16,400
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$22,500
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$23,125
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$24,549
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$22,000
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$25,000
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$27,349
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$216,423
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Less
Sales Returns & Discounts
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$0
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($350)
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$0
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($206)
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($234)
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$0
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$0
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($280)
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($1,200)
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($1,600)
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$0
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($2,400)
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($6,270)
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Service
Revenue
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$0
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$0
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$0
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$0
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$0
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$250
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$350
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$100
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$0
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$0
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$1,245
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$1,360
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$3,305
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Other
Revenue
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$0
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$0
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$0
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$0
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$0
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$0
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$0
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$1,500
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$0
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$0
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$0
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$0
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$1,500
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Net
Sales
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$5,000
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$12,650
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$16,000
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$6,794
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$14,266
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$16,650
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$22,850
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$24,445
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$23,349
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$20,400
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$26,245
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$26,309
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$214,958
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Cost
of Goods Sold*
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$2,000
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$5,200
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$6,400
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$2,800
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$5,800
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$6,560
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$9,000
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$9,250
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$9,820
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$8,800
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$10,000
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$10,940
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$86,569
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Gross
Profit
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$3,000
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$7,450
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$9,600
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$3,994
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$8,466
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$10,090
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$13,850
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$15,195
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$13,529
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$11,600
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$16,245
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$15,369
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$128,389
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EXPENSES
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JAN
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FEB
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MAR
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APR
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MAY
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JUN
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JUL
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AUG
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SEP
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OCT
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NOV
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DEC
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YTD
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Salaries
& Wages
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$2,500
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$2,500
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$3,500
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$5,000
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$5,000
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$5,000
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$8,000
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$9,000
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$9,000
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$9,000
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$9,000
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$9,000
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$76,500
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Marketing/Advertising
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$400
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$450
|
$450
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$450
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$900
|
$900
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$900
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$900
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$900
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$900
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$1,200
|
$1,200
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$9,550
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Sales
Commissions
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$250
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$650
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$800
|
$350
|
$725
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$820
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$1,125
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$1,156
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$1,227
|
$1,100
|
$1,250
|
$1,367
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$10,821
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Rent
|
$1,250
|
$1,250
|
$1,250
|
$1,250
|
$1,250
|
$1,250
|
$1,250
|
$1,250
|
$1,250
|
$1,250
|
$1,250
|
$1,250
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$15,000
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Utilities
|
$250
|
$150
|
$200
|
$200
|
$200
|
$250
|
$250
|
$250
|
$200
|
$200
|
$250
|
$250
|
$2,650
|
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Website
Expenses
|
$175
|
$175
|
$175
|
$175
|
$175
|
$175
|
$175
|
$175
|
$175
|
$175
|
$225
|
$225
|
$2,200
|
|
Internet/Phone
|
$110
|
$110
|
$110
|
$110
|
$110
|
$110
|
$110
|
$110
|
$110
|
$110
|
$110
|
$110
|
$1,320
|
|
Insurance
|
$165
|
$165
|
$165
|
$165
|
$165
|
$165
|
$165
|
$165
|
$165
|
$165
|
$165
|
$165
|
$1,980
|
|
Travel
|
$100
|
$0
|
$0
|
$250
|
$0
|
$0
|
$0
|
$0
|
$675
|
$800
|
$0
|
$0
|
$1,825
|
|
Legal/Accounting
|
$1,200
|
$0
|
$0
|
$450
|
$0
|
$500
|
$0
|
$0
|
$0
|
$0
|
$0
|
$250
|
$2,400
|
|
Office
Supplies
|
$125
|
$125
|
$125
|
$125
|
$125
|
$125
|
$125
|
$125
|
$125
|
$125
|
$125
|
$125
|
$1,500
|
|
Interest
Expense
|
$0
|
$0
|
$0
|
$0
|
$0
|
$0
|
$0
|
$0
|
$0
|
$0
|
$0
|
$0
|
$0
|
|
Total
Expenses
|
$6,525
|
$5,575
|
$6,775
|
$8,525
|
$8,650
|
$9,295
|
$12,100
|
$13,131
|
$13,827
|
$13,825
|
$13,575
|
$13,942
|
$125,746
|
|
Income
Before Taxes
|
($3,525)
|
$1,875
|
$2,825
|
($4,531)
|
($184)
|
$795
|
$1,750
|
$2,064
|
($298)
|
($2,225)
|
$2,670
|
$1,427
|
$2,643
|
|
Income
Tax Expense
|
($529)
|
$281
|
$424
|
($680)
|
($28)
|
$119
|
$263
|
$310
|
($45)
|
($334)
|
$401
|
$214
|
$396
|
|
NET INCOME
|
($2,996)
|
$1,594
|
$2,401
|
($3,851)
|
($156)
|
$676
|
$1,488
|
$1,754
|
($253)
|
($1,891)
|
$2,270
|
$1,213
|
$2,246
|
|
*In the service industry, Cost of
Goods Sold is the monetized value of the time spent on the client.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
START-UP
COSTS
|
|
Your Office-Based Agency
|
January 1, 20xx
|
|
COST ITEMS
|
MONTHS
|
COST/ MONTH
|
ONE-TIME COST
|
TOTAL COST
|
|
Advertising/Marketing
|
|
|
|
|
|
Employee
Salaries
|
|
|
|
|
|
Employee
Payroll Taxes and Benefits
|
|
|
|
|
|
Rent/Lease
Payments/Utilities
|
|
|
|
|
|
Postage/Shipping
|
|
|
|
|
|
Communication/Telephone
|
|
|
|
|
|
Computer
Equipment
|
|
|
|
|
|
Computer
Software
|
|
|
|
|
|
Insurance
|
|
|
|
|
|
Interest
Expense
|
|
|
|
|
|
Bank
Service Charges
|
|
|
|
|
|
Supplies
|
|
|
|
|
|
Travel
& Entertainment
|
|
|
|
|
|
Equipment
|
|
|
|
|
|
Furniture
& Fixtures
|
|
|
|
|
|
Leasehold
Improvements
|
|
|
|
|
|
Security
Deposit(s)
|
|
|
|
|
|
Business
Licenses/Permits/Fees
|
|
|
|
|
|
Professional
Services - Legal, Accounting
|
|
|
|
|
|
Consultant(s)
|
|
|
|
|
|
Inventory
|
|
|
|
|
|
Cash-On-Hand
(Working Capital)
|
|
|
|
|
|
Miscellaneous
|
|
|
|
|
|
ESTIMATED START-UP BUDGET
|
|
|
|
|
Determining a business' startup costs is
critical to ensure enough cash is available to begin business operations
within the budgeted time frame as well as within the cost budget. Startup
costs typically fall within two categories: monthly costs and one-time
costs. Monthly costs cover costs that
occur each month during the startup period, and one-time costs are costs that
will be incurred once during the startup period.
Steps for preparation:
·
Step 1: Enter the company name and the date this estimate is being
prepared.
·
Step 2: Enter the number of months and the monthly cost for each cost
item that is recurring. For one-time costs only, skip the monthly costs. If
there are cost items that have both recurring and one-time amounts, enter
those as well. The total cost will calculate automatically in the far-right
column.
·
Step 3: Once all of the costs are entered, review the individual items
and total amount to see where the budget can be fine-tuned or move something
out into the future when more revenue is coming in.
|
START-UP COSTS
|
|
Your Office-Based Agency
|
January 1, 20xx
|
|
REVENUE
|
JAN
|
FEB
|
MAR
|
APR
|
MAY
|
JUN
|
JUL
|
AUG
|
SEP
|
OCT
|
NOV
|
DEC
|
YTD
|
|
Estimated
Product Sales
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Less
Sales Returns & Discounts
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Service
Revenue
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other
Revenue
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Sales
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of Goods Sold
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross Profit
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EXPENSES
|
JAN
|
FEB
|
MAR
|
APR
|
MAY
|
JUN
|
JUL
|
AUG
|
SEP
|
OCT
|
NOV
|
DEC
|
YTD
|
|
Salaries
& Wages
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Marketing/Advertising
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sales
Commissions
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Rent
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Utilities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Website
Expenses
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Internet/Phone
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Insurance
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Travel
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Legal/Accounting
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Office
Supplies
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest
Expense
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other
1
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Expenses
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income Before Taxes
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income Tax Expense
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NET INCOME
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
* In the service industry, Cost of
Goods Sold is the monetized value of the time spent on the client.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Completing projections for Profit and Loss
of a new company is a good exercise to understand and communicate when the
company will begin to break even and see how sales and profits will grow. The
top portion of the model to the left, Revenue, is a good way to forecast
sales, month by month for the first year. The lower portion then applies
estimated expenses for the same period of time to derive the business'
profitability.
Steps for preparation:
·
Step 1: Enter the company name and the date this projection is being
prepared.
·
Step 2: For each month, beginning in January or whenever the start is
estimated, enter the expected sales to be. This could be for a single service
or multiple services. Add lines to this model for additional offerings. From
this, subtract any product returns or discounts that are to be tracked (these
should be shown as negative numbers, for example, -10). Below Net Sales, enter
the Cost of Goods Sold. This refers to the monetized value of the time spent
on a particular client.
·
Step 3: For each month, enter the estimated salaries, marketing,
utilities, and other items that are projected.
·
Step 4: Once all of the costs have been entered, review the individual
items and total amount to see where projections can be fine-tuned or move
something out into the future when more revenue is coming in. The objective is
to get to profitability and positive cash flow as quickly as possible.