Instructions & CommentraryINSTRUCTIONSThe purpose of this workbook is to assist you to understand the weekly and monthly Breakeven Point for your business afterallowing for a reasonable owner's living wage. (Cell B63 on Family Budget Sheet & Cells B41 & C41 on the Breakeven Analysis Sheet)It also allows you to include your desired profit margin % to reveal a monthly and weekly sales target that includes profitIf you charge by way of an hourly rate, you can insert the number of hours you work each week to calculate your hourly rate.On the Profit Forecasting Sheet you can also use the Forecasting tool to project different scenarios using various assumptionsStep 1 - Family BudgetComplete the Family Budget sheet to calculate what you need to draw from the business in the form of a reasonable living wageStep 2Transfer this figure to the Breakeven Analysis and insert under heading "Owners Salaries"Step 3 - Breakeven AnalysisRecord all known or estimated business expenses for the year in the Breakeven AnalysisImportant: As you record the expenses in the Breakeven Analysis, note when they are due in the right hand Comments column(What month and whether monthly, quaterly or annually) - will make it easier when the time comes to do a Cash Flow ProjectionInsert the Cost of Goods Sold in cells B58 & C58The Spreadsheet will now calculate what is needed each month and week to breakeven - excluding Cost of Goods Sold andincludng Cost of Goods SoldStep 4 - Add Your Desired Profit MarginAdd your desired Profit Margin % cells B65 & C65- to calculate a monthly and weekly sales figure that includes your desired profit marginStep 5 - Calculate Your Hourly Charge-Out RateFor those who price by an hourly rate - insert your average chargeable billable hours for the week in cells B70 and C70 - Note it is important for this calculation to only use the hours for which you can charge - which in all likelihood will be different to the hours you actually work each weekProfit ForecastingIn the final sheet - by inserting last years Income - Cost of Goods Sold and Expenses - you can see what profit you canachieve by changing the percentage (growth or deciine) in the Grey coloured cellsNote: The Formulas in the Spreadsheets are password protected, if you need to change them them go to:Tools > Protection> Unprotect Sheet. The password is - tsbi - Don't forget to re-protect after making your changes

Family BudgetFamily Monthly BudgetExpensesBill AmountExpenses When Due (annual, quarterly, monthly)Per Month $EducationEducation : Tuition$0.00$0.00Education- School Fees$0.00$0.00Education-School Books$0.00$0.00Bus Fares$0.00$0.00MedicalTo calculate a monthly figure forHealthcare : Prescriptions$0.00$0.00an annual expense insert the annualHealth Insurance$0.00$0.00figure in the blue cell belowAmbulance$0.00$0.00The gold cell shows the monthly figureGroceries$120.00Food - Groceries - Meat$0.00$0.00$10.00HouseUtilities Electricity - Gas$0.00$0.00Bills : Telephone$0.00$0.00To calculate a monthly figure forBills : Water & Sewerage$0.00$0.00a quarterly expense insert the annualCouncil Rates$0.00$0.00figure in the blue cell belowRubbish Bag$0.00$0.00The gold cell shows the monthly figureInsurance - Home$100.00Insurance- Home & Contents$0.00$0.00$25.00Insurance - Personal$0.00$0.00$0.00$0.00Insurance - Motor Vehicles$0.00$0.00$0.00$0.00Loan RepaymentsHome Loan$0.00$0.00Investment Property Loan$0.00$0.00Credit Cards$0.00$0.00$0.00$0.00Motor VehiclesCar : Car Maintenance$0.00$0.00Car : Petrol/Diesel$0.00$0.00Car RACV$0.00$0.00Car Registration$0.00$0.00Car Registration$0.00$0.00PetsDog Registration$0.00$0.00Dog Clipping$0.00$0.00Vetinary Expenses$0.00$0.00OtherInternet$0.00$0.00Mobile$0.00$0.00Haircuts$0.00$0.00Newspapers$0.00$0.00$0.00$0.00DiscretionaryHolidays$0.00$0.00Wine Clubs$0.00$0.00Gym Membership$0.00$0.00Pay TV$0.00$0.00Leisure : Weekend Spending$0.00$0.00Pocket Money$0.00$0.00Clothing$0.00$0.00Xmas Presents$0.00$0.00Birthday Presents$0.00$0.00$0.00$0.00$0.00$0.00TOTAL$0.00$0.00

Breakeven AnalysisBreakeven AnalysisCost CategoryLast Years Profit & LossNext Year EstimateCommentAccounting & Bookkeeping$0$0Advertising - Promotion - Marketing$0$0Bad Debts$0$0Bank Charges & Fees$0$0Bank Credit Card Charges$0$0Bookkeeping$0$0Borrowing Expenses$0$0Cleaning & Gardening$0$0Computer Supplies$0$0Debt Collection$0$0Depreciation$0$0Donations$0$0Electricity and Gas$0$0Fees - Trade - Associations - Franchise$0$0Freight$0$0General Expenses$0$0Hire purchase charges$0$0Insurances - All$0$0Interest - Bank$0$0Laundry$0$0Leasing & H/P - Payments & Charges$0$0Legal Fees (incl. Licences & Permits, etc.)$0$0Licences & Permits$0$0Magazines Journals$0$0Medical Expenses$0$0Motor Vehicle Maintenance (fuel, oil, repairs)$0$0Office Expenses$0$0Petty Cash Expenditure$0$0Postage$0$0Printing & Statonary$0$0Protective Clothing$0$0Rates and Outgoings$0$0Registration Fees$0$0Rent$0$0Repairs and Maintenance Building$0$0Seminars & Conferences$0$0Salaries - Total Staff$0$0- Owner(s) salaries$0$0Staff Training & Welfare$0$0Subscriptions$0$0Workcare Levy (Say 2.2% )$0$0Superannuation (Currently 9%)$0$0Security Systems$0$0Taxes - Income Taxes & FBT$0$0Telecommunications - Phones - Fax - ISP$0$0Travel & Accommodation$0$0Uniforms$0$0Wages$0$0Dividend$0$0$0$0$0$0$0$0A. TOTAL COST OF BUSINESS FOR YEAR$0$0Cost of Goods Sold$0$0B. TOTAL COSTS INCL/COGS$0$0MONTHLY BREAKEVEN (incl. COGS) B 11$0$0WEEKLY BREAKEVEN (incl. COGS) B 48$0$0Desired Profit Margin %00Monthly Sales Target including Profit Margin$0.00$0.00Weekly Sales Target including Profit Margin$0$0Billable hours for the week00Hourly Charge out rate to cover costs$0.00$0.00Hourly Charge-out rate including desired profit margin$0.00$0.00

Profit ForecastProfit ForecastingSales$100,000Sales % Improvement5$5,000Target Sales$105,000Cost of Goods Sold$30,000GOGS % Improvement5$1,500Adjusted Cost of Goods Sold$28,500Operating Expenses$20,000Expenses % Improvement3$600Adjusted Expenses$19,400Net Profit Before Tax$57,100InstructionsInsert actual results for last year into lines Sales(Cell C5)Cost of Goods Sold (Cell C9) & OperatingExpenses (Cell C13)In the Grey cells insert the % increase or decrease that youwould like to achieve for Sales, COGS or ExpensesThe Spreadsheet will calculate the Net Profit Before Tax