(for operational year only, no revenue in start up column)
1, Units sold =Target market size (number of buyers from your targeted segment) x market share (from competitor analysis and marketing plan ). Remember any units being given away, per promotions in your marketing plan won’t bring revenue so can’t be in this revenue number, but you have to produce them anyway, so those giveaway units will be counted in your costs below.
2, Price (from marketing plan pricing strategy and/or from competitor analysis). Remember any discounts to your price, per your marketing plan.
1. Products : COST PER UNIT X UNITS TO BE PRODUCED
a. Manufacturing cost per unit (cite source and assumptions), show separate lines for cost of labor and materials if available separately
b. units to be produced for start up period and for year one of operations:
i. start up costs: units for inventory, models for display, promotional samples to be given);
ii. Year one of Operations : units sold
c. shipping, transport, export/import fees per unit on separate line
2. Services = cost per unit x units to be sold
a. costs depend on rates per unit in which service is created/delivered, typically labor rate per hour or average dollar value of delivered contract
b. units to be sold depend on how service is measured; e.g., can be number of contracts, number of hours spent on service
Sales and marketing. Separate lines for marketing labor and marketing materials
Marketing labor derived from salaries shown on organizational chart and/or shown as dollars paid in contracts for sales agent, web designers, etc. , as applicable
Marketing materials derived from marketing plan (include all costs that are not labor)
General and administrative expenses
Salaries for all project implementation roles shown in your organizational chart.
Separate lines should be provided for logical divisions; e.g, for Board of Directors if applicable; support from U.S. home office; in country office support functions
Any office expenses for utilities, rent, and equipment that is not a capital expense (e.g, personal computers, copy machines) . Unless you are purchasing land or large pieces of equipment (e.g, for assembly lines in factories), assume that office equipment will be expensed and shown on the income statement (rather than the balance sheet*)
Any headcount attributed to Research and Development for this specific project, derived from
Your organization chart and/or
Any contracts or alliances that this project must pay for, per your business plan
*note: Balance sheet capital items, plus cost of any loans you are recommending, should be shown as a footnote on your income statement, since you are not required to create a balance sheet, but your client will want to see the investment required and the source of funds you are recommending. Your income statement does not have to include depreciation for capital or interest paid for capital loans. It must only show operating earnings (earnings before interest, taxes: EBIT).