Business costs

[scooby]

What are the others doing in your Plan B?? Or are we all part of it?

[Spoiler]

The cost of free advice you got from an internet forum.

Free, right?

[doomage]

The cost of free advice you got from an internet forum.

[ASB]

The situation we're in is that a company wants to give us business, but at this stage will not confirm exactly how much they will give us. They've asked for a figure of what we need to make in order for it to be viable for us. Then they'll advise if they can push enough business our way, year 1.

In parallel, we're also doing a forecast of how much we believe we can do year 1.

I understand that. The problem is we can't know what your new venture will need to spend on in order for it to viable. Sure we can tell you the kind of things that are specific to our own businesses, but they are not your new venture. Sure, there are some standard things, which you may be spending on to a lesser or greater degree, and I'll cover them again. But anything beyond that is specific to your business. So here is my list:

Salary
Bank
Accountant
Web
Mail
Travel
Accommodation
Subsistence
Entertainment
Legal
Advertising
Insurance
Stationery
Postage
Conferencing
Phone
Heat
Light
Rent
Rates
Secretarial
Professional Bodies
Hardware
Software
Bought in product

[Spoiler]

You seem to be sort of going at backwards. Essentially everything you spend is cost of sales. So rather than worry about how you are going to categorise what you spend think about the process from procurement to final sale and the hands it will go through and everything else you need to spend to deliver the product to market.

The situation we're in is that a company wants to give us business, but at this stage will not confirm exactly how much they will give us. They've asked for a figure of what we need to make in order for it to be viable for us. Then they'll advise if they can push enough business our way, year 1.

In parallel, we're also doing a forecast of how much we believe we can do year 1.

[ASB]

These are itemized in a spreadsheet, with costs associated. The expenses line is a generic thing to cover travel, entertainment, etc.

You've probably got it pretty much covered. But what about Rent, Rates, Heat, Light, Legal, Profession Bodies, Advertising, Hardware, Software.

You seem to be sort of going at backwards. Essentially everything you spend is cost of sales. So rather than worry about how you are going to categorise what you spend think about the process from procurement to final sale and the hands it will go through and everything else you need to spend to deliver the product to market.

[Spoiler]

Well being pedantic, everything you have listed is expenses so you don't actually need a line for expenses.

These are itemized in a spreadsheet, with costs associated. The expenses line is a generic thing to cover travel, entertainment, etc.

[Spoiler]

Had any thoughts about doing this yourself rather than asking us?

Sorry, for a moment I thought I'd put that list together myself (along with researching the costs this morning). Someone's hacked my account and inserted that list.

Was just asking if I'd missed anything off.

[MarillionFan]

Well being pedantic, everything you have listed is expenses so you don't actually need a line for expenses.

Please, you'll need to explain why he doesn't have to list sundry expenses???

[northernladuk]

Had any thoughts about doing this yourself rather than asking us?

Are you going to be capable of actually running this business?

How about going to speak to someone at the bank who can give you some resources instead of guessing it?

[JamJarST]

Busy today ...

Here's my list of cost categories my plan B will incur:


Salary
Bank fees
Accountant fees
Bookkeeping fees
Web hosting
Mail\calendar\contacts service
Expenses
Insurance
Stationery
Virtual office

Any care to contribute some others?
Thanks.

Well being pedantic, everything you have listed is expenses so you don't actually need a line for expenses.

[Spoiler]

Busy today ...

Here's my list of cost categories my plan B will incur:


Salary
Bank fees
Accountant fees
Bookkeeping fees
Web hosting
Mail\calendar\contacts service
Expenses
Insurance
Stationery
Virtual office

Any care to contribute some others?
Thanks.