Resources

These are independent organisations, listed because they are useful. B-PlanDIY has no commercial relationship with any of them.

Revenue

The money your sales bring in, before any costs are taken off. Also called turnover or sales income.

Cost of sales

What it costs you to deliver what you sold - materials, stock, subcontractors. It rises and falls with your sales.

Gross profit

Revenue less cost of sales. What is left to cover your overheads.

Gross profit margin

Gross profit as a percentage of revenue. A useful figure to compare against others in your industry.

Operating expenses

The costs you carry whether or not you sell anything - rent, insurance, software, salaries. Often called overheads.

Net profit

What remains after every cost. The figure your business is ultimately judged on.

Cashflow

The money actually moving in and out of your bank account, and when. Different from profit, and the reason profitable businesses still fail.

Cashflow forecast

A month-by-month projection of money in and out, showing your bank balance at the end of each month.

Working capital

The cash you need to keep operating day to day, bridging the gap between paying suppliers and being paid by customers.

Breakeven

The point where revenue exactly covers costs. Below it you lose money; above it you make money.

Contribution per unit

Sale price less the cost of making that one sale. It tells you how many units you must sell to cover your overheads.

Drawings

Money the owner takes out of the business. It reduces your bank balance but is not a business expense.

Fixed and variable costs

Fixed costs stay the same whatever you sell; variable costs move with your sales volume.

Position statement

One sentence describing who you serve, what they need, and what you offer them. It anchors everything else in the plan.

SWOT

Strengths, Weaknesses, Opportunities and Threats. A structured way of looking honestly at where your business stands.