Definitive Business Plan, Second Edition, The

Net profit

Having worked through your operating costs, you will have built up a table that looks similar to Fig. 9.4 . You will possibly have one of these for each functional area – production, marketing, etc. The one for production costs goes into cost of sales (see Fig. 9.6 ) as discussed in Chapter 8 .

Figure 9.6. Costs in the profit and loss account

The final monthly versions for the next year are likely to become your budgets, your detailed financial operating plans. They belong in the annexes to your business plan, together with a line-by-line commentary (Fig. 9.5 shows an example extract). This is too detailed for the main body of the business ...