Issue link: https://docs.hic.us/i/403552
B. Operating Costs An operating budget is prepared when you are actually ready to open for business. The operating budget will reflect your priorities in terms of how your spend your money, the expenses you will incur and how you will meet those expenses (income). Your operating budget also should include money to cover the first three to six months of operation. The operating budget should allow for the following expenses: • personnel • insurance • rent • depreciation • loan payments • advertising/promotions • legal/accounting • miscellaneous expenses • supplies • payroll expenses • salaries/wages • utilities • dues/subscriptions/fees • taxes • repairs/maintenance C. Financial Considerations And Projections After determining expected costs, you must use this data to create financial documents that illustrate what it will take (financially) to generate a profit, as well as how long it will take to generate a profit. The financial section of your business plan should include: • Any loan applications you've filed. • A capital equipment and supply list. • A balance sheet. • A breakeven analysis. • Pro-forma income projections (profit and loss statement). • Pro-forma cash flow. Note: The income statement and cash flow projections should include a three- year summary, detailed by month for the first year, and detailed by quarter for the second and third years. www.hsi.us care@hsi.us 42