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Topic: Determining Sales and Costs
As one of the four functions of management (see Henri Fayol), the control function involves projecting the costs of a business through budgeting and preparation of financial statements. Eventually the financial statements must be analyzed to reveal what is going on in a business.
What are your monthly sales? Provide supporting calculations for how you reached your sales figure, and assure the calculations are realistic. For example, you might expect 100 visitors to your store the first month, 150 the second (and so forth) and they will each spend an average of $20. For the year, that might total $100,000.
Pick your top five expenses. How have you determined your expenses? Be specific, and back up your assumptions with research. For example, if you will be renting, what are the going rates for rentals? How much will electricity and other utilities cost? What salaries will you pay and what perks will you give employees? What is your salary or intended draw from the company?
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