Business Plan Help

[jay_mack1@hotmail.com]

Hey Ladies and Gentlemen,

In the past few weeks you've been great help. Well, I need a spot of help and maybe you guys can help me out a little. The ones that started up a business. I need some cash flow numbers, estimated income for the next three. What is a logical way of creating these numbers. I know that there has to be money there monthly to keep the overhead payed. I need a little direction, if you'd be so kind.

[elcruisr]

You might want to purchase something like Bizplan Builder software if you can afford it. It will help walk you through all of the things that you might miss and give you some things to think about. Another source might be some business plan books at the local library as well. Cash flow projections are tough to guess. Take a very hard look at how much work you think you can land in your market then what you think your expenses will be and consider yourself lucky if you come in at 60 to 70% of that on your first year! Factor everything imaginable on your expense side. Insurance, elecricity, tooling, software, equipment repair, labor, shopspace rent ( or taxes and mortage ), water bill, vehicle expenses if you pick up or deliver materials, etc, etc. Don't forget to factor yourself some sales time as you need to get out there and sell yourself! Then, when you're really depressed by all of this go for it anyway.... Somehow alot of us make it!

Eric

[artisan]

I agree in large part with much of what Eric says and the general tone of how he said it. The easiest way to write a business plan is to do it backwards.....figure out ALL your fixed monthly costs and add in 50% more for a quick but surprisingly accurate number. Then, knowing your margin on jobs will usually be no more than 50-60%, you can calculate your needed revenue to break even....in other words, double the aforementioned number and you'll be in the ballpark. This does not include the constant number of "Educations" you will pay for however .... but skinning your knee is sometimes the only way to learn something and remember it....D

[gerald_d]

Your highest monthly cost, and the first one to consider, always, is your "salary". Figure out what you want to, or have to, earn to keep your family and household running - and keep that separate from your business venture.

[jay.mack@chiefind.com]

I want to do it part time until I can build enough of a customer base to leave the bounds of employment and become the boss. That way I can still count on other income, other then that of the business. But on the other hand, I'll have to keep on top of the business as well in order to get it to flourish.