Create a cost plan
The cost plan records what your company costs – before the first franc of revenue comes in. It is the basis for break-even, cash flow and funding requirement.
Separate fixed and variable costs
Fixed costs arise regardless of revenue – such as rent, salaries or insurance. Variable costs depend on sales, such as materials or shipping. This distinction is crucial for break-even and contribution margin.
Complete rather than optimistic
The most common mistake is forgetting costs or estimating them too low. Build in a buffer and also think of one-off purchases, taxes and social insurance. A complete cost plan protects you from nasty surprises.
The cost plan in the financial plan
The cost plan feeds directly into profitability and cash flow planning. If you link it properly with revenue and funding requirement, you get a coherent overall picture.
Frequently asked questions
What is the difference between fixed and variable costs?
Fixed costs arise regardless of revenue (e.g. rent), variable costs rise with sales (e.g. materials).
Which costs are often forgotten?
Often social insurance, taxes, insurance, one-off purchases and a safety buffer.
Create your financial plan now
Start for free with planix – no registration. Guidance, feedback and next steps, thoroughly reviewed within 24 hours max.
- 600+ founders supported
- Swiss company
- Start for free – no registration