118 | HOW TO WRITE A BUSINESS PLAN
4i.–4n. Other Expenses. Inevitably, you will
encounter a number of other expenses,
depending on your business. Spend
some time thinking about these using
the accompanying list as a starting point.
Then list all the other costs you expect
to incur on Lines 4i to 4n. If you expect
any of these to be recurring expenses,
include your monthly estimate for each.
For expenses that occur once or twice a
year, divide the annual total by 12 and
enter an amount each month.
Total Fixed Expenses. Add up lines 4a
through 4n and fill in the total for each
month.
Profit/(Loss). From the Gross Profit (line 3),
subtract the Total Fixed Expenses (line
5) and fill in the result. Make sure that
you place brackets around each negative
number—that will identify it as a loss.
Year Total. Finally, add up each of the rows
(lines 1 through 6). Enter the yearly
totals under the Year Total column.
Check your arithmetic by seeing if the
monthly profit figures add up to the
same figure you get for your yearly total.
If they don’t match, double-check your
addition to find the error. If they match,
congratulations!
Common Expenses
Here are some of the more common
expenses that businesses incur on a regular
basis:
• Attorneys, consultants, tax advisors
• Auto and truck expenses
• Bad debts
• Commissions (probably should be
placed in cost of sales or as a deduction
from sales revenue if commissions are
paid regularly; if paid only occasionally,
include them in fixed expenses)
• Dues and publications
• Employee benefit programs
• Equipment rental
• Freight in on merchandise acquired
(also sometimes placed in cost of sales;
freight out to customers is usually paid
for by the customer)
• Janitorial
• Laundry
• Licenses and taxes including permit
fees (not income taxes, which are
calculated after profits are known)
• Office supplies
• Payments to investors
• Postage, fax, telephone
• Repairs and maintenance
• Security and alarm systems
• Travel and entertainment
• Utilities.