By Mildred J at August 19 2019 05:19:02
A business plan contains several main elements. First, it lays out the mission and the goal of the business. The plan will spell out whether your company is in business to serve a greater good or simply to fulfill an unmet need. Determine whether your business will serve other businesses or supply products to consumers. These are all important elements that should be included.
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?