Part 4 & 5
Business Resume, Letter head, Website plan or other e-commerce plan:
Monthly Sales plan, Breakeven analysis and Profit and Loss Statements
Monthly Sales Plan
Month % of Year Sales Sales Plan Justification
April 7.0 $92,400 15.66% below average due to store opening
May 9.3 $122,760 12% above average due to Mother’s Day and new spring wardrobe
June 8.3 $109,560 An average month
July 7.0 $92,400 15.66% below average due to vacation season
August 8.3 $109,560 An average month
September 9.7 $128,040 16.87% above average due to back to school and career and change
of season
October 8.3 $109,560 An average month
November 9.5 $125,400 14.46% above average due to start of holiday shopping season
December 11.0 $145,200 32.53% above average, busiest shopping month of the year
January 6.3 $83,160 24.1% below average due to weather and after Christmas slump
February 7.0 $92,400 15.66% below average. Valentine’s Day can give a small lift, but bad
weather can still be an issue
March 8.3 $109,560 An average month
Month % of Year Sales Sales Plan Justification
April 7.0 $92,400 15.66% below average due to store opening
May 9.3 $122,760 12% above average due to Mother’s Day and new spring wardrobe
June 8.3 $109,560 An average month
July 7.0 $92,400 15.66% below average due to vacation season
August 8.3 $109,560 An average month
September 9.7 $128,040 16.87% aboveofaverage
Fiscal Year due to back to school and career and change of
the business
season
refers to the completion of any one-year or 12-month accounting period other than a
October 8.3 $109,560 An typical
averagecalendar
month year.
November 9.5 $125,400 14.46% above average due to start of holiday shopping season
December 11.0 $145,200 32.53% above average, busiest shopping month of the year
January 6.3 $83,160 24.1% below average due to weather and after Christmas slump
February 7.0 $92,400 15.66% below average. Valentine’s Day can give a small lift, but bad
weather can still be an issue
March 8.3 $109,560 An average month
April 7.0 $92,400 15.66% below average due to store opening
May 9.3 $122,760 12% above average due to Mother’s Day and new spring wardrobe
June 8.3*ave month $109,560 An average month
July 7.0 $92,400 15.66% below average due to vacation season
August 8.3*ave month $109,560
Determine which An average
months willmonth
your sales be average- it will depend on the type of store
you are opening
September 9.7 $128,040
Typically November16.87% above average
and December due toaverage
are above back to school and career and change of
season
Typically January and July are the slowest months
October 8.3*ave month $109,560
The month you openAn average month
your store will also be a slow month
November 9.5 $125,400 14.46% above average due to start of holiday shopping season
December 11.0 $145,200 32.53% above average, busiest shopping month of the year
January 6.3 $83,160 24.1% below average due to weather and after Christmas slump
February 7.0 $92,400 15.66% below average. Valentine’s Day can give a small lift, but bad
weather can still be an issue
March 8.3*ave month $109,560 An average month
100.00 1,320,000
Month % of Year Sales Sales Plan Justification
April 7.0 $92,400 15.66% below average due to store opening
May 9.3 $122,760 12% above average due to Mother’s Day and new spring wardrobe
June 8.3 $109,560 An average month
July 7.0 $92,400 15.66% below average due to vacation season
August 8.3 $109,560 An average month
September 9.7 $128,040 Using the
16.87% % given
above to you
average dueintothe second
back column,
to school and calculate
career andthe dollarof
change
amount for column 3
season
October 8.3 $109,560 Take
An the % month
average and multiply if by your annual sales
Ex. $1,320,000 x 7.0%= $92, 400
November 9.5 $125,400 14.46% above average due to start of holiday shopping season
December 11.0 $145,200 32.53% above average, busiest shopping month of the year
January 6.3 $83,160 24.1% below average due to weather and after Christmas slump
February 7.0 $92,400 15.66% below average. Valentine’s Day can give a small lift, but bad
weather can still be an issue
March 8.3 $109,560 An average month
100.00 1,320,000
Month % of Year Sales Sales Plan Justification
April 7.0 $92,400 15.66% below average due to store opening
May 9.3 $122,760 12% above average due to Mother’s Day and new spring wardrobe
June 8.3 $109,560 An average month
To fill in the 4th column- justification % above or
July 7.0 $92,400 15.66% below average due to vacation season
below the average months you will follow this
August
formula. 8.3 $109,560 An average month
For each month above or below the average you
September 9.7 $128,040 16.87% above average due to back to school and career and change of
will subtract the 2 numbers season
Ex. April is 15.66% below the average
October
($92,400) 8.3 $109,560 An average month
$109,560 - $92,400 = $17,160
November 9.5 $125,400 14.46% above average due to start of holiday shopping season
Take the difference and multiply it by 100 and
December
divide 11.0 $ amount $145,200
by the average 32.53% above average, busiest shopping month of the year
EX. $17,160 x 100 / $109,560=15.66%
January 6.3 $83,160 24.1% below average due to weather and after Christmas slump
February 7.0 $92,400 15.66% below average. Valentine’s Day can give a small lift, but bad
weather can still be an issue
March 8.3 $109,560 An average month
100.00 1,320,000
Breakeven Analysis
• Total Revenue = Total Costs
• Determines what gross sales you will need to achieve in order to
break even the first year, considering fixed costs to pay regardless of
profitability.
• Estimate sales over breakeven
• Will you make money the first year?
• Analysis helps determine if changes need to be made before proceeding
Breakeven Analysis
Annual sales $1,320,000
Annual fixed costs $488,532
Gross profit % .487 1. Use 48.7% as the gross profit %
Break-even sales $1,003,146 2. Breakeven sales = Annual fixed costs/
($488,532 divided by.487) gross profit %
Sales over breakeven $316,854 3. Sales over breakeven = Annual sales –
($1,320,000 minus Breakeven sales
$1,003,146) 4. Profit dollars = Sales over breakeven x
Profit dollars $154,308 gross profit %
($316,854 x .487)
*Fixed costs and ending profit
dollars should be rounded to
eliminate cents
Cost Category Annual Expenses % of Sales Plan
Staffing (payroll or wages) $105,600 8.0%
Payroll taxes $14,520 1.1%
Rent $198,000 15%
Fixed Costs
Utilities (fuel, electric, $21,120 1.6%
water)
Maintenance and repairs $5,280 .4%
Security $3,960 .3%
Telephone/cellphones $7,920 .6%
Internet $1,980 .15%
POS system maintenance/ $4,752 .36%
software updates
Insurance $7,920 .6%
Supplies and postage $9,240 .7%
Marketing/advertising $52,800 4%
Travel and entertainment $19,800 1.5%
Accounting/bookkeeping $17,160 1.3%
Banking services $9.240 .7%
Miscellaneous $9.240 .7%
Total all expenses $488,532 37% of sales revenue
Fixed Costs- Justifications
1. We have kept our staffing costs at 8%, there are 2 partners to also work the floor in the store,
but will need more staff due to the size of the store
2. Payroll taxes calculated according to the percentages provided.
3. Rent is stated according to our leasing agreement.
4. Utilities expenses are calculated according to the statistic on average utility cost per square
foot for commercial property (Iota Communications, Inc., 2021).
5. Maintenance and repair calculated according to average maintenance and repair costs per
square foot for commercial property (Commercial Real Estate: Building Operating Cost
Breakdown, 2022).
6. Security is stated based on average installation, maintenance fees for a security system in
Ontario (Security Equipment Pricing Guide, n.d.)(What’s the Cost of a Security System for a
Business?, n.d.).
7. Telephone, fax and internet costs are calculated according to average prices of
telecommunication providers for businesses (Bell Business, 2023).
8. POS system maintenance and software updates are calculated according
to average in Ontario (Chechi, 2022).
9. Insurance is calculated according to the average in Ontario (Small
Business Insurance Ontario, 2022).
10. Supplies and postage, Travel and entertainment, banking services and
miscellaneous costs are calculated according to the percentages provided
and adjusted slightly according to the business size and specifics.
11. Accounting and bookkeeping costs are calculated according to average
outsourcing fees for small and medium businesses (How Much Do
Bookkeeping Services for Small Businesses Cost?, 2022).
12. Marketing and advertising costs are calculated according to associated
costs of running e-commerce platforms/website and social media,
incorporating some targeting advertising.
Itemized Expenses row 5-21
Annual expenses divided into 12 month payments (exceptions- staffing, payroll taxes, marketing, travel)
Total Expenses- rows 6-21 added up by month
Row 4 Net Sales from Monthly Sales plan inserted by month
Row 5 COGS – WE ARE ALL GOING TO USE THIS # 51.3%
This means taking the Net Sales for the month and multiplying it by 51.3% for each month to create the COGS dollar
value.
Row 6 Gross Profit (margin) WE ARE ALL GOING TO USE THIS # 48.7%
This means taking the Net Sales for the month and multiplying it by 48.7% for each month to create the Gross Profit (margin)
dollar value
The double check is that the COGS and the Gross Profit (margin) add up to the Net Sales
Row 27- Net Profit/Loss – take your Gross Profit(margin) dollar value and subtract it from the Total
Expenses for each month to generate this dollar amount.
7. Make sure to then add up the rows across to create the Totals column
8. The percentage column uses the %s from the annual fixed expense sheet and the COGS and GP
%s.
Now the entire chart is filled in
Step by step
1. Itemized Expenses row 8-25
a) Annual expenses divided into 12 month payments (exceptions- staffing, payroll
taxes, marketing, travel)
2. Total Expenses- rows 8-25 added up by month
3. Row 4 Net Sales from Monthly Sales plan inserted by month
4. Row 5 COGS – WE ARE ALL GOING TO USE THIS # 51.3%
This means taking the Net Sales for the month and multiplying it by 51.3% for each
month to create the COGS dollar value.
5. Row 6 Gross Profit (margin) WE ARE ALL GOING TO USE THIS # 48.7%
This means taking the Net Sales for the month and multiplying it by 48.7% for each month
to create the Gross Profit (margin) dollar value
The double check is that the COGS and the Gross Profit (margin) add up to the
Net Sales
[Link] 27- Net Profit/Loss – take your Gross Profit(margin) dollar value and
subtract it from the Total Expenses for each month to generate this dollar amount.
7. Make sure to then add up the rows across to create the Totals column
8. The percentage column uses the %s from the annual fixed expense sheet and
the COGS and GP %s.
Now the entire chart is filled in
