Page 158 - Business Plans that Work A Guide for Small Business

Financial Plan: Telling Your Story in Numbers • 149

Lazybones has
both company stores and
the company succeeds. The number of each nonexecutive corporate headquarters to
personnel grows according to a rough plan as the company oversee. They need
to detail them as separate
adds franchises (Exhibit 6.1). Finally, to offset inflation and other cost centers. Furthermore,
normal cost increases, we assumed all other HQ expenses we see some gaps. No
increase by 5 percent each year (Exhibit 10.6). training cost? No marketing
administration cost? No
national contracts effort?
Remember to explicitly
delineate the costs associ-
Exhibit 10.6 Headquarters Costs ated with the competitive
advantages you profess.
Annual Overhead Year 1 Year 2 Year 3 Year 4 Year 5
Factor increase 1.05 1.05 1.05 1.05
Expenses
Advertising expense $15,000 $100,000 $105,000 $110,250 $115,763
Insurance $13,003 $13,653 $14,336 $15,053 $15,805
Interest expense $0 $0 $0 $0 $0
Postage and delivery $710 $746 $783 $822 $863
Professional fees $50,000 $100,000 $50,000 $25,000 $25,000
Rent $18,000 $18,900 $19,845 $20,837 $21,879
Telephone $3,600 $3,780 $3,969 $4,167 $4,376
Internet $2,113 $2,219 $2,330 $2,446 $2,568
Travel and entertainment $500 $525 $551 $579 $608
Office supplies $2,000 $2,100 $2,205 $2,315 $2,431
Administrative wages $195,000 $315,000 $445,000 $530,000 $775,000
Total expense $299,926 $556,926 $644,019 $711,469 $964,293