(Optional) Project business income and expenses.

Projection should include

  • anticipated sales of the product or service
  • the cost of the product or service
  • the cost of promotional activities
  • operating expenses (e.g., taxes, insurance, labor, regulatory costs, licenses)
  • other variable costs
  • other fixed costs.

Process/Skill Questions:

  • What business actions affect profit?
  • What is the difference between fixed expenses and variable expenses?
  • When developing a budget, how can you estimate variable expenses?
  • Why should a business establish a financial plan?
  • What financial statements are vital to the development of a financial plan?
  • How does seasonality of a product or service affect income?