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The Business Plan - Financial Projections

(Your financial projections are to be calculated on an annual basis)

Calculate your annual gross profit

Projected sales		£ 228000
Less direct costs
Purchases	£ 114000
Labour costs	£ 48000
Total direct costs		£ 162000
=Gross profit		£ 66000

Calculate your gross profit margin

(Gross profit £ 66000 / Sales £ 228000) X 100 = 29%

Calculate your annual projected overheads

Indirect costs
Business salaries	£ 0
Drawings	£ 0
Rent	£ 11400
Rates	£ 600
Light / heat	£ 604
Power	£ 200
Telephone	£ 240
Insurance	£ 600
Maintenance	£ 408
Advertising	£ 2004
Other expenses	£ 840
Bank interest / HP / leases	£ 6600
Total overheads	£ 23496

Calculate the annual turnover required to break-even

(Overheads £ 23496 / Gross profit margin 29%) X 100 = £ 81168

Calculate the monthly turnover to break-even

Break-even sales £ 81168 / 12 months = £ 6764

Calculate your estimated profit

Projected annual sales	£ 228000
Less break-even sales	£ 81168
	£ 146832	X 29% (Gross profit margin)
= Profit	£ 42504