Definitive Business Plan, Second Edition, The

Gross profit

I saved the best for last. The final step is to subtract cost of sales from sales value – to arrive at gross profits. Like this:

	Money
Sales	900 000
Less cost of sales	750 000
Gross profit	150 000

You can feel justifiably proud of having arrived at this point. We are almost there. By now, your knowledge and self-confidence should be growing. If you were doubtful of mastering the complexities, you should by now realize that business planning is a matter of simple organization and logic. It is not an awesome task beyond explanation. You will soon be in a position not only to write a clear plan and explain your financial plans but also to understand and question figures presented to you. Take a break. Then write a summary of all this ...