Finance and Business planning
Sales revenue (less cost of sales) = gross profit (less overhead costs) = Operating profit = Net operating profit
Key strategies
– How will I deliver these strategies?
– What exactly do I have to do?
– Describe each activity that I will have to pay for
– Consider all the marketing p’s
Marketing- (promotion) costs? Media? Photography? Printing? Events? Packaging? Promotional pop-up
People- (only EXTRA) new? More? Less?
Product- additional new? Samples? Development? Sources? Costs?
Operations – service? Customer service? Organisation?
Place- distribution costs? What margin is this sales route?
What will be the return on spending all this money on marketing?
– Grow sales?
– Subscriptions?
– License income?
What information can you find to estimate what your income might be?
– Who might know?
– Can you find similar cases of marketing activity and what rewards did they make?
– Does your idea seem likely to bring a good return in income?
– Can you find an example of a similar campaign and liken it to your product?
Sales Forecast
What sales are you predicting?
– Need a sales forecast for all 3 years
– Will there be any peaks and troughs throughout the year? (it is very unusual that the sales would be flat, they should also align increases in sales with periods of marketing activity).
Marketing Budget
– Any costs to promote sales and/or the business
– Detailed marketing budget for the 1st year
– A basic summary for the 2nd and 3rd year
Fixed costs or Business overheads
– Salaries – Rent
– Heat – Light maintenance
– IT support
– Licenses
– Insurance
– Business rates