for coffee shop Business plan FINANCIALS Break Even Analysis This is where you calculate the amount of

for coffee shop Business plan

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FINANCIALS Break Even Analysis This is where you calculate the amount of sales you will need to make to break even (i.e. not making a profit or loss) Notes: Cash flow is a projection of how money (cash) will move in and out of your business. → Cash Inflow - This indicates the avenues from which money will come into the business + Cash Outflow-This indicates how money will leave the business or flow out of the business. + Closing Balance - this is the difference between the money that flows into the business and the monies paid out. Example: If your total Cash Inflow is $100,000 and your total Cash Outflow is $25,000 than your Closing Balance will be $100,000-$25,000 $75,000. + Opening Balance - Your opening balance is the monies brought over from a previous month to the new month. This is the same amount of last month's Closing Balance. Example: The Closing Balance for month 3 will be the Opening Balance for month 4. Please note that in Month 1 there is no Opening Balances. In this section you need to make some vital assumptions. Your assumptions must be based on realistic projections and calculations. Sale Forecast What amount of sales will you be making on a monthly basis? These are estimated figures, however they must be based on the expected result of the marketing strategy. The key is not to over-estimate, as this will set you up for disappointment. Try to be as realistic as possible. product\servuce Expecte d Sales M Mon Mo Mo Mo Mo Mo Mo Mon Mon Month Exped Month: Salor th 11 12 FINANCIALS Break Even Analysis This is where you calculate the amount of sales you will need to make to break even (i.e. not making a profit or loss) Notes: Cash flow is a projection of how money (cash) will move in and out of your business. → Cash Inflow - This indicates the avenues from which money will come into the business + Cash Outflow-This indicates how money will leave the business or flow out of the business. + Closing Balance - this is the difference between the money that flows into the business and the monies paid out. Example: If your total Cash Inflow is $100,000 and your total Cash Outflow is $25,000 than your Closing Balance will be $100,000-$25,000 $75,000. + Opening Balance - Your opening balance is the monies brought over from a previous month to the new month. This is the same amount of last month's Closing Balance. Example: The Closing Balance for month 3 will be the Opening Balance for month 4. Please note that in Month 1 there is no Opening Balances. In this section you need to make some vital assumptions. Your assumptions must be based on realistic projections and calculations. Sale Forecast What amount of sales will you be making on a monthly basis? These are estimated figures, however they must be based on the expected result of the marketing strategy. The key is not to over-estimate, as this will set you up for disappointment. Try to be as realistic as possible. product\servuce Expecte d Sales M Mon Mo Mo Mo Mo Mo Mo Mon Mon Month Exped Month: Salor th 11 12

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It seems like youre seeking assistance with creating a business plan for a coffee shop specifically focusing on the financials and the breakeven analy... View the full answer