Service Business Break Even Analysis

A service based business can use break even point analysis to calculate the number of units it is required to sell in order to reach break even. As a service business does not normally have a physical product to sell it must first define the unit (clients numbers, labor hours, projects, jobs etc.) to be used in the analysis.

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Production Capacity Planning in Financial Projections

A manufacturing business needs to review its draft financial projections to ensure that they include sufficient capital investment to provide the production capacity needed to meet the sales demand forecast and the required inventory levels.

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Target Costing and Selling Price

The target costing model is a method used by a business to determine the required manufacturing product cost necessary to achieve a given gross margin percentage based on a market driven selling price.

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Capital Expenditure Model in Financial Projections

Capital expenditure is a necessary part of operating a business and is included in the cash flow statement of the financial projections template. This capex model allows those costs to be estimated in detail and summarized.

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General and Administrative Cost Model

General & administrative costs are a necessary part of operating a business. Expenses associated with general and administration such customer acquisition costs and the costs to service customers throughout the customer life-cycle, need to be included in the income statement of the financial projections template, and this model allows those cost to be estimated in detail and summarized.

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Sales and Marketing Cost Model

Sales & marketing costs are a necessary part of operating a business. Expenses associated with sales and marketing such customer acquisition costs and the costs to service customers throughout the customer life-cycle, need to be included in the income statement of the financial projections template, and this model allows those cost to be estimated in detail and summarized.

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Research and Development Cost Model

R&D costs are a necessary part of developing new products for a business. Expenses associated with R&D such as staff costs, need to be included in the income statement of the financial projections template, and this model allows those cost to be estimated in detail and summarized.

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Estimate New Capital

New equity capital is included in the cash flow statement of the projection as a positive figure as it represents cash flowing into the business from investors. For example, if in year two the plan inject new capital of 5,000 to finance the purchase of new machinery, the figure of 5,000 should be included in the cash flow statement on the proceeds from the issue of new share capital line.

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