Building the Plan _ There are numerous variations on how to write business plans, and, like all good quality business communications, they must be tailored to the individual company involved. The following elements, however, are fundamental to all basic business plans: Start with a Vision Statement. This is a brief outline of your goal in founding your business. This is the big_picture place, so if you are going to get dreamy_eyed and romantic anywhere in your business plan, this is the only place where you might get away with it. Your vision statement may be as brief as a single sentence, but is more likely going to be a short paragraph.
So let's first look at what exactly are fixed expenses? They are exactly what they say they are; they are fixed. This simply means these are expenses that are ongoing whether you have a lot of sales or Ŕ" sales. They are expenses like utilities, taxes, rent, salaries other than the wages used in the making of the actual product or doing a service, business fees, telephone, etc. See how these expenses would continue on even if you have 0 sales? Any expenses that fall into this category are fixed expenses. Far too many small business owners never divide their expenses into fixed and variable. As a matter of fact, if you could have a business that had Ŕ" fixed expenses; this would be the best of all worlds, why? If you had Ŕ" sales, you would have Ŕ" expenses. So the closer you could get to this the better you would be.