

CANDEL MAKING

Creating an extensive business plan is unnecessary for most businesses to get

started. However, creating a short business plan offers several benefits that more
than outweigh the investment of time:

• T
he process of thinking and writing the plan provides clarity for the business.

• If
capital is needed from outside sources, investors want to see a plan that
demonstrates a solid understanding and vision for the business.

• T
he plan will help prioritize tasks that are most important.

• W
ith growth, the plan offers a common understanding of the vision to new leaders.

A simple business plan for a start-up service company can be completed rather
quickly. Keeping in mind who the intended audience is, write simply. The plan needs
to be understandable, readable, and realistic.
This template is organized into seven sub-plans or sections to be completed.

1. Executive Summary

2. The Enterprise

3. Marketing Strategy

4. Management and Personnel

5. Risk factors

6. Financial plan

7. References

It is recommended to complete the Executive Summary last, after all of the other
sections have been completed. As information is filled in, from the Company
Overview to the Financial Plan, the writing should tell the story of the motivation and
vision behind the business. Be sure to include what will make the business
successful, how success will be achieved, and how success will be measured.
It is important to keep the business plan updated in order to see progress, celebrate
success, and adjust where issues arise. This is best done on a quarterly, if not
monthly, basis.

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 1. EXECUTIVE SUMMARY
1.1. The Candle Industry Business
 There are over 400 commercial, religious and institutional candle manufacturers in
the U.S., as well as numerous small craft producers for local, non-commercial use,
who melt more than 1 billion pounds of wax per year.
 Typically, a major U.S. candle manufacturer offers 1,000 to 2,000 varieties of
candles in its product lines.
 Candle sales have grown 10 to 15 percent per year in the last decade, fueled by
consumer interest in aromatherapy and increased demand for home fragrance
products.
 Candles are used in 7 out of 10 U.S. households.
 Manufacturer surveys show that more than 95% of all candles are purchased by
women.
 Candle industry research indicates that the most important factors affecting candle
sales are scent, color, cost and shape. Consumers are increasingly purchasing
candles as a focal point for their home décor, and for aromatherapy-like relaxation
and stress reduction.
 Fragrance: With a choice of about 10,000 different candle scents, fragrance is by
far the most important characteristic impacting candle purchases today, with three-
fourths of candle buyers saying it is “extremely important" or "very important" in
their selection of a candle.
 The majority of U.S. consumers use their candles within a week of purchase.
 Nine out of ten candle users say they use candles to make a room feel comfortable
or cozy.
 Candle users say they most frequently burn candles in the living room (42%),
followed by the kitchen (18%) and the bedroom (13%).
 Approximately one in five women say they use candles to decorate the yard, patio
or other exterior areas, as well as the interior of their home.
 Both men and women consider candles to be an always-acceptable and highly
appreciated gift for a wide variety of occasions.
 Candle purchasers say they view candles as an appropriate gift for the holidays
(76%), as a house warming gift (74%), a hostess/dinner party gift (66%), a thank you
(61%) and as adult birthday gifts (58%).
 The retail price of a candle generally ranges from approximately 50¢ for a votive to
$75 for a large pillar candle. Highly unusual or embellished artisan candles can be
$200 or more.

Two-thirds of candle purchasers say they use candles once a week or more often

A candle business is a great venture to start as people buy candles for various
reasons. Candles can be made in two ways, in molds or containers. The first thing we
need to decide is what kind of candles we want to make.

The candle making business is a business that requires minimal capital investment
yet provide a good return, especially if we can identify a market that lacks supply.
Candles are not used only for religious and illumination purposes, in the past, candles
were used in restaurants, hotels, and hospitals on regular basis and they also
occasionally used in various homes.

Another decision that will need to make before starting our candle business is what
kind of wax we want to work with. While there are numerous types of waxes
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available, each of them has its pros and cons. We want to know which wax would be
best for our business in the long run. We will also find out from competitors what the
best waxes are for starting this business.

Over the past five years, improving revenues and the introduction of various colored
and scented candles has helped the industry recover from the loss incurred during
the recession. Therefore, the candle making industry is expected to continue to grow
in both the domestic and industrial areas. In turn, this will be underpinned by rising
disposable spending and an increasing preference for candles as colored and scented

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• T
he Market Opportunity

Candle make in the United States have improved especially due to the increasing
variety of scented and colored candles, with 7 out of 10 households in the United
States using them. Most people, both domestically or abroad, are choosing to add
candles to their homes for various reasons. This makes candle- Making enterprises
which employ 6065 people.

While the sale of candles started in the 1990s, the demand surged in the year 2000-
2010 and had been increasing by at least 10 percent every year. However, the
economic downturn decreased the demand from consumers with sales gradually
pacing up especially through social media, a channel used to ensure that more
people become aware of the use of candles in their homes.

The candle making business is a multi-billion -dollar industry, excluding the sale of
candle accessories, with a positive projection of 2.7 persent between2010 and 2015

2 The Enterprise

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Mission Statement

Our mission is to build a candle making business that will not only meet the demands
of our existing customers but also intrigue the potential ones. Our target market is
not only Ethiopia, we aim to be known in Africa as well.

Business Objective

our business objectives for the next three years are presented in the table below.

Year 1

…… revenue for the first year of oprations

self – sustainable business by the end of month 3

90 persent customer satisfaction rate by the end of year1 Year 2

75 persent customers return rate

……. Present net profit from year 2

…… revenue for the yer 2

….. present of our customers who have been gained by referrals

• M
arket focus: What market and ideal customers will the business target?

• C
ompetitive advantage: How does the business intend to succeed against its
competitors?

• O
wnership: Who are the major stakeholders in the company?

• E
xpected returns: What are the key milestones for revenue, profits, growth, and
customers?

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 2. COMPANY OVERVIEW
The Company Overview is a brief summary of the intended business, including what it
uniquely delivers, the mission, how it got started, market positioning, operational
structure, and financial goals. After reviewing this section, the reader should have a
broad understanding of what the business is setting out to do and how it is
organized.
This section is not meant to be lengthy. Keep it short and succinct. This is the snapshot
of the business. The type of business will determine what of the following sections
will be required for the business plan. Only include what is needed to properly
represent the business and remove anything else.

• C
ompany summary: This is the introductory section to the company, also known as
the ‘elevator pitch’ of what the company stands for and is setting out to do. Include
the company’s goals and some of the near-term objectives.

• M
ission statement: This is a concise statement on the guiding principles of the
company and what the company aims to do for customers, employees, owners, and
other stakeholders.

• C
ompany history: This provides the back story, especially the personal story, of why
the business was founded. Use this section to give the overarching history of the
company from its start and bring the reader up-to-date on where the company is now
in terms of sales, profits, key services, and customers.

• M
arkets and services: This outlines the target market and related needs that the
company will address. Include brief descriptions of offered services and targeted
markets and customer types. This section can be a general overview as more details
will be suggested in a later section of this plan.

• O
perational structure: This describes the operational details of the business. List
any potential employees needed on the payroll to make the business run.

• Fi
nancial goals: This describes the start-up capital needed, projected revenue and
profits, forecast, and budget of the business.

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 3. BUSINESS DESCRIPTION
This section will first frame the business opportunity and should answer the question:
what problem(s) is the company trying to solve? Use a case example to describe the
customers’ pain point and how it is solved today. If the business’ service addresses
something the market has yet to identify as a problem (for instance, a new mobile
app or a new clothing line), then also describe how the business’ solution reduces
stress, saves money, or brings joy to the customer.
After framing the opportunity, describe the service in detail and how it is the solution
the business offers, how it solves that problem, and what benefits customers will
receive.
This section also describes in more detail how the services will be rendered and the
pricing structure (e.g., fixed rate versus an hourly fee). Describe how the company
plans to differentiate from its competitors. What is the target market and how can
the customer capitalize on your unique offering?
Depending on the type of business, the following sections may or may not be
necessary. Only include relevant sections and remove everything else.

• O
pportunity: Describe the current market for the business’ offered service. At a high
level, what is the market and who are its participants; is it business customers or
consumers; what is the specific geography, etc.? More details on the market will be
provided in the next section of the plan. Next, describe the current state of available
services and how the business will offer better. Also discuss any additional services
the company plans to offer in the future.

• P
roduct overview: Describe the service offerings of the business in as much detail as
possible. If it is effective to include pictures, this would be a good place to place
them.

• K
ey participants: Identify any strategic partners in the business, such as critical
suppliers, distributors, referral partners, or any others. In some businesses, products
are custom- made and any break in their supply will impact the business. There may
be key contributors to the services offered, so it is important to identify them.

• P
ricing: Provide pricing of the service, gross margin projects, and upgrade paths.
Describe why the company’s pricing will be attractive to the target market. Have a
gauge on the competitor’s pricing and explain how the business’ service is unique to
justify its pricing structure.

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o Note the difference between working hours and billable hours. All working hours
are not billable. If the business has employees with differing skill levels (for example,
in a law practice, there are associates, paralegals, lawyers, partners, etc.), indicate
the various billing rates.
o Communicate rates clearly to clients and customers. If there are potential
additional fees which will be passed on to clients or customers, define and establish
them up front.

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 4. MARKET ANALYSIS
Despite candles being around for numerous centuries, they still play a vital role in
today’s society. Aside from illumination, the era of scented candles and fragrances
has ushered in a new perspective and the market it constantly looking for unique and
creatively made candles for use in homes, businesses and special occasions. In this
business plan for candle making, Wax Glow Candle has done an extensive market
analysis and identified untapped opportunities to harness in order to grow business
revenue.

4.1 Market segment

For Wax Glow Candle to realize its dreams, the candle making business has identified
the appropriate customer markets to advertise its products and services. Any candle
making business plan sample should clearly outline who potential customers are and
how the business intends to establish connections.

STRENGTHS WEAKNESSES
• Advantage •
• Capabilities •
• Assets, people •
• Experience •
•Financial •
reserves •
•Value •
proposition
•Price, value,
quality

OPPORTUNIT THREATS
IES
•
•Areas to
improve •
• New segments •
•Industry •
trends •Environmental
• New products
•New effects
innovations •
•Key •
partnership

5.1.1. Households

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Houston is a large city with over a million households which is a key market for Wax
Glow Candle. The first customers for candles are households and residential
establishments who use them for various purposes. Even though candles in the
home are rarely used for illumination, many homes still buy candles for various
purposes such as decoration. Scented candles have become a leading product for
households and Wax Glow Candle has an opportunity to put in place creative
marketing strategies to reach a wide population segment. When starting your own
candle business, the domestic market is a key segment that cannot be ignored
considering most of the products from Wax Glow Candle are tailored for domestic
use.

5.1.2 Gift Shops

Nowadays, many people consider unique candles as an awesome gift item which can
be presented on various occasions. In most gift shops, you will find various types of
unique candles and associated accessories which are sold primarily as gift items.
Houston has a large number of gift shops and it’s important for Wax Glow Candle to
find ways of forming partnerships with local gift shops with an aim of stocking their
products in gift shops. Because they have direct access customers, gift shops can be
of great benefit and help the candle making business to reach its revenue targets.

5.1.3 Hotels and Restaurants

The hospitality industry is a key use of candles which are placed in various sections
of hotels and restaurants. Exclusive restaurants and hotels love using candles on
their dining tables and bathrooms to create a relaxing and elegant environment.
Hospitality based businesses are always in need of good quality and unique candles
to be utilized for various purposes.

5.1.4 Beauty and Massage Parlors

Candles are a common feature in massage and beauty parlors who invest heavily in
various kinds of candles in their establishments. Houston and its surrounding has
many massage parlors which are great customer prospects for Wax Glow Candle.
With the right strategies put in place, candle making business profitable ventures
include approaching business that require different types of candle related products.

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5. OPERATING PLAN
Additionally, it is necessary to outline how the company currently and will continue to
develop and maintain a loyal customer base. This section includes management
responsibilities with dates and budgets and making sure results can be tracked. What
are the envisioned phases for future growth and the capabilities that need to be in
place to realize growth?
The operating plan describes how the business works. Depending on the type of the
business, important elements of this plan should include how the company will bring
services to market and how it will support customers. It is the logistics, technology,
and basic blocking and tackling of the business.
Depending on the type of business, the following sections may or may not be
necessary. Only include what is needed and remove everything else. Remember: try
to keep the business plan as short as possible. Excessive detail in this section could
easily make the plan too long.

• O
rder fulfillment: Describe the company’s procedures for delivering services to its
customers. As a service company, determine how to keep track of the customer
base, form of communications, and how best to manage sales and data.

• P
ayment: Describe the standard payment terms and the payment methods accepted.
Describe the pricing plans (one-time service fees, hourly-based fees, markups, and
any other fees) and any impact on cash flow.

• T
echnology: If technology is critical to the business, whether it is part of the service
offering or is fundamental to delivering a service, describe the key technologies used
that are proprietary. If the business data (company or customer) is at risk, describe
the data security plan in place, as well as any backup or recovery in the case of a
disaster or outage.

• K
ey customers: Identify any customers that are important to the success of the
business due to a partnership, volume, or pathway to a new market. Also identify any
customers who bring in more than 10% of the company’s revenues.

• K
ey employees and organization: Describe unique skills or experiences that are
required of the current team. If necessary, describe any proprietary recruiting or
training processes in place. List key employees that are necessary for success.
Include an organization chart to support this section.

• F
acilities: As a home-based business, be educated on legalities and tax filings for
such business types.

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 6. MARKETING AND SALES PLAN
Marketing is a very important aspect of any organizations as it serves a dual purpose in
generating profits for the business, as well as creating publicity for the company. It’s
very important that marketing strategies are fine-tuned and drafted so that so that
they can bring in the desired outcomes. In view of this, we conducted thorough
research to ensure that we have the best strategies in place in order to generate
profits for the organization.

People get attracted to visuals, and so this means that we will strive to put more effort
in our visuals to ensure that we attract customers with our products. Candles are
used in various purposes but people mainly use them to achieve a sense of
calmness, so we will ensure that the vide adverts and images we use project serenity
to potential clients.

• K
ey messages: Describe the key messages that will elevate services in the target
customers’ eyes. If there is sample collateral or graphical images of some messages,
include them.

• M
arketing activities:

6.2 Sales Strategy

For Wax Glow Candle to effectively reach out to the market, this business plan for
candle making to implement the strategies below to advertise its range of products.

• Send introductory letters to businesses and stakeholders to create

awareness about the candle making business
• Organize an opening party and invite guests from target markets to
advertise the business. During the opening, offer visitors free samples of products to
allow them have a feel of the quality
• Attend exhibitions and trade shows which are awesome platforms for
advertising the candle making business
• Market the business on social media platforms such as Facebook, Twitter
and Instagram. Advertise the business online using Google Ads.
• Advertise Wax Glow Candle on local directory listings

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• Create a simple search engine optimized website to boost the online
presence of the candle making business for purposes of gaining higher online
rankings
• Advertise Wax Glow Candle on local broadcast and print channels such as
newspapers, TV and radio
 7. FINANCIAL PLAN
Creating a financial plan is where all of the business planning comes together. Up to
this point, the target market, target customers, and pricing have all been identified.
These items, along with assumptions, will help estimate the company’s sales
forecast. The other side of the business will be what expenses are expected. This is
important on an ongoing basis to see when the business is profitable. It is also
important to know what expenses will need to be funded before customer sales, or
the cash they generate, is received.
At a minimum, this section should include estimated start-up costs and projected profit
and loss, along with a summary of the assumptions being made with these
projections.
Assumptions should include initial and ongoing sales, along with the timing of these
inflows.

• P
rojected start-up costs: The table below shows a sample of ongoing and one-time
cost items that the business might need in order to open. Many businesses are paid
on credit over time and do not have cash coming in immediately. It is necessary to
make assumptions about how many months of recurring items, in addition to one-
time expenses, to estimate when cash will begin to flow into the company. To begin
with, the company will have to fund out of savings or an initial investment. There is a
blank table in the Appendix to complete potential start-up cost projections.
 START-UP COSTS

ONE-TIME
COST ITEMS MONTHS COST/ MONTH TOTAL COST
COST
Advertising/Marketing 3 $300 $2,000 $2,900

Your Home-Based Agency January 1,

2018

Employee Salaries* 4 $500 $2 $2,002

Employee Payroll Taxes and Benefits 4 $100 $1,500 $1,600
Rent/Lease Payments/Utilities 4 $750 $2,500 $5,500
Postage/Shipping 1 $25 $25 $50

Communication/Telephone 4 $70 $280 $560

Computer Equipment $0 $1,500 $1,500
Computer Software $0 $300 $300
Insurance $0 $60 $60

Interest Expense $0 $0 $0
Bank Service Charges $0 $0 $0
Supplies $0 $0 $0
Travel & Entertainment $0 $0 $0

Equipment $0 $2,500 $2,500

Furniture & Fixtures $0 $0 $0
Leasehold Improvements $0 $0 $0
Security Deposit(s) $0 $0 $0

Business Licenses/Permits/Fees $0 $5,000 $5,000

Professional Services - Legal,
Accounting $0 $1,500 $1,500
Consultant(s) $0 $0 $0
Inventory $0 $0 $0
Cash-On-Hand (Working Capital) $0 $1,000 $1,000
Miscellaneous $0 $2,000 $2,000
ESTIMATED START-UP BUDGET $26,472
*Based on part-time employees. This may change once you hit your growth benchmark.
 Projected profit and loss model: The model below shows a sample of the
projections a small business is forecasting for their first 12 months of operations. The
top portion of the table shows projected sales and gross profit. This is a good place
to begin creating the company’s sales forecast. The next section itemizes the
recurring expenses the business is projecting for the same months. These should be
consistent with the estimated start-up costs completed in the prior section. At the
bottom of this model, it will possible to see when the company is becoming profitable
and what expense items are the most impactful to its profitability. There is a blank
table in the Appendix to complete the business’ own start-up cost projections.
START-UP COSTS

Your Home-Based Agency January

1, 2018
REVENUE
Estimated FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC YTD
$5,00 Sales$13,0$16, $7,00$14,5 $16,4 $22,5 $23,1 $24,5 $22,0 $25,0 $27,3 $216,4
0 2
0 00 00 0 00 00 00 5 49 00 00 49 23
Le ($234 (
( $0 ( ( (
ss $0 $
$ $0 ($280) $ 1 $ $
Sa ($35 $0 ,
2 ) 1 6 2 6
le 0 , 0 , ,
s 6 2 4 2
$
Re 0 0 7
0
tu )
rn 0
0 ) 0 0
s ) ) )
&
Di
sc
ou
nt
s

Service $1,24 $1,36

Revenue $0 $0 $0 $0 $0 $250 $350 $100 $0 $0 5 0 $3,305
Other
Net Revenue $0 $0 $0 $0 $0 $0 $1,500$0 $0 $0 $0 $1,500
Sales$12,6$16, $6,79$14,2 $16,6 $22,8 $24,44$23,3 $20,4 $26,2 $26,3 $214,9
$5,00 0
0 50 00 4 66 50 50 5 49 00 45 09 58
Cost of$2,00 $5,20$6,4 $2,80$5,80 $6,56 $9,00 $9,250 $9,82
Goods 0 $8,80

$ $ $ $ $ $ $ $ $ $ $ $ $
Gro 3 7 9 3 8 1 1 1 1 1 1 1 1
ss , , , , , 0 3 5 3 1 6 5 2
Pro 0 4 6 9 4 , , , , , , , 8
fit 0 5 0 9 6 0 8 1 5 6 2 3 ,
 9 3
0 0 0 4 6 9 5 2 0 4 6
0 0 5 9 0 5 9 8
9
EX J F M A M J J A S O N D Y
PE A E A P A U U U E C O E T
NS N B R R Y N L G P T V C D
ES
Sal $ $ $ $ $ $ $ $ $ $ $ $
ari 2 2 3 5 5 5 8 $ 9 9 9 9 7
es , , , , , , , 9 , , $10,0
, $10,9
, $86,5
6
&
Sold* 0 5 0 5 0 50 0 0 0 0 0 0 0 ,
0 0 0 0 00 0 40 0 6 ,
0 0 0 0 0 0 0 0 0 0 0 5
0 0
Wa 0 0 0 0 0 0 0 0 0 0 0 0 0
ges
0

Marketing $400 $450 $450 $450 $900 $900 $900 $900 $900 $ $
$1,20
/Adver $900 1 9
tising 0 , ,
2 5
0 5
0
0

Sales $1,12 $1,22 $1,10 $1,25 $1,36 $10,82

$250 $650 $800 $350 $725 $820 $1,156
Commissions 5 7 0 0 7 1

$1,25 $1,2 $1,25 $1,25 $1,25 $1,12 $1,12 $1,12 $1,12 $1,12 $15,00
Rent $1,25 5 0 0 0 5 $1,12 5 5 5 5 0
0 0 0 5
Utilities $250 $200 $200 $200 $250 $250 $250 $200 $200 $250 $250 $2,650
Expenses $150
Website $175 $175 $175 $175 $175 $175 $175 $175 $225 $225 $2,200
$175
$175
Internet/Phone $110 $110 $110 $110 $110 $110 $110 $110 $110 $110 $1,320
$110
$110
g
Insurance 0
$165 $165 $165 $165 $165 $165 $165 $165 $165 $165 $165 $1,980
$165
Travel $100 $0 $0 $250 $0 $0 $0 $0 $675 $800 $0 $0 $1,825

Income ($3,5 $1,8 $2,8($4,5 ($18 $795 $1,7 $2,06 ($29 ($2,2 $2,6 $1,4 $2,64
Before 2 5) 7 5 2 5 3 1) 4 50 4
8 2 5) 7 0 2 7 3
Taxes ($529 $28 $42 ($68 ) ) ($33 $401 $214
) $119 $263
Income Tax 0
Expense 1 4 )
($28 $310 ($45 4 ) $396
) )
($2,9 $1, $2, ($3, ($15 $1,4 ($25 ($1, $2,2 $1,2
NET 9 59 40 85 6 $67 8 $1,7 3 89 7 1 $2,24
INCOME 6) 4 1 1) ) 6 8 54 ) 1) 0 3 6
*In the service industry, Cost of Goods Sold is the monetized value of the time spent
on the client.
APPENDIX

START-UP COSTS
Home-Based Agency Date
COST ITEMS MON COST/ ONE- TOTAL
THS MONTH TIME COST
COST
Advertising/Marketing
Employee Salaries
Employee Payroll Taxes
and Benefits
Rent/Lease
Payments/Utilities
Postage/Shipping
Communication/Telephone
Computer Equipment
Computer Software
Insurance
Interest Expense
Bank Service Charges
Supplies
Travel & Entertainment
Equipment
Furniture & Fixtures
Leasehold Improvements
Security Deposit(s)
Business
Licenses/Permits/Fees
Professional Services -
Legal, Accounting
Consultant(s)
Inventory
Cash-On-Hand (Working
Capital)
Miscellaneous

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ESTIMATED START-UP
BUDGET

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Instructions for Getting Started with Estimated Start-Up Costs

Determining a business' startup costs is critical to ensure enough cash is available to

begin business operations within the budgeted time frame as well as within the cost
budget. Startup costs typically fall within two categories: monthly costs and one-time
costs. Monthly costs cover costs that occur each month during the startup period,
and one-time costs are costs that will be incurred once during the startup period.
Steps for preparation:

• S
tep 1: Enter the company name and the date this estimate is being prepared.

• S
tep 2: Enter the number of months and the monthly cost for each cost item that is
recurring. For one-time costs only, skip the monthly costs. If there are cost items that
have both recurring and one-time amounts, enter those as well. The total cost will
calculate automatically in the far-right column.

• S
tep 3: Once all of the costs are entered, review the individual items and total
amount to see where the budget can be fine-tuned or move something out into the
future when more revenue is coming in.

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START-UP COSTS
Home-Based Agency Date
REVENUE JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC YTD
Estimated Product Sales
Less Sales Returns &
Discounts
Service Revenue
Other Revenue
Net Sales
Cost of Goods Sold

Gross Profit
EXPENSES JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC YTD
Salaries & Wages

Sales Commissions

Marketing/Advertising

Rent
Utilities

Internet/Phone
Website Expenses

Insurance
Travel

Office Supplies
Legal/Accounting

Interest Expense
Other 1
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Total Expenses
Income Before Taxes

Income Tax Expense

NET INCOME
* In the service industry, Cost of Goods Sold is the monetized value of the time spent on the client.

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Instructions for Getting Started on Profit & Loss
Projections

Completing projections for Profit and Loss of a new company is a good

exercise to understand and communicate when the company will begin to
break even and see how sales and profits will grow. The top portion of the
model to the left, Revenue, is a good way to forecast sales, month by
month for the first year. The lower portion then applies estimated expenses
for the same period of time to derive the business' profitability.
Steps for preparation:

• Step 1: Enter the company name and the date this projection is being
prepared.

• Step 2: For each month, beginning in January or whenever the start is

estimated, enter the expected sales to be. This could be for a single service
or multiple services. Add lines to this model for additional offerings. From
this, subtract any product returns or discounts that are to be tracked (these
should be shown as negative numbers, for example, -10). Below Net Sales,
enter the Cost of Goods Sold. This refers to the monetized value of the time
spent on a particular client.

• Step 3: For each month, enter the estimated salaries, marketing,

utilities, and other items that are projected.

• Step 4: Once all of the costs have been entered, review the individual
items and total amount to see where projections can be fine-tuned or move
something out into the future when more revenue is coming in. The
objective is to get to profitability and positive cash flow as quickly as
possible.

Downloaded by Chala Mosisa ([email protected])

Downloaded by Chala Mosisa ([email protected])