The third section is your business profile. Here is where you present the details of how you will do business. Spell out the details about facility rental, materials acquisition, and staffing requirements. Detail the volume of trade that you need to reach the break_even point, and project when you foresee reaching that point. The fourth section is your economic assessment. Explain the niche in the economy that your business will fill, and why it will succeed. Bring in studies provided by regulatory agencies if appropriate and possible. Show demographics and traffic flow if appropriate. Show your potential lenders why your business is the place to put their money. Finally, provide a cash flow assessment, projecting a one_year plan. Again, be realistic, but not pessimistic. Do provide for potential economic difficulties and how you will address them.
Labor and material costs are also directly proportionate to sales. These are things that go directly into the making of the product or into doing the service. a. Labor cost is the actual direct labor used in the making of product or doing the service. The cost would also include all the fringe benefits like social security, payroll taxes, vacation pay, holidays, sick pay days, etc. b. Material costs are all the materials used in the making of product or in doing the service. In the lawn mower service as an example it would be the gasoline used in the mower and any other materials used directly in that service. For producing a product it would be all the materials used in the product that is sent to the customer including all the packaging materials.