Budgets

[TechMonster]

Does have one have an example of a company budget they would like to share? Doesn't need to have real numbers. Just trying to get a idea how people are laying it out for computer companies.
Thanks
Travis

[Tony_Scarpelli]

This is from memory and its about 2-3 years old on a store I closed. I might have forgotten a line item or two.

Hardware sales $ 4,400
COGS ($2200)
Revenues Hardware $2200

Labor revenues $22,000
Gross revenues $24,200

Returns allowance ($226)

Net Sales $23,974

Expense:
Management $2500
Wages payroll taxes $6900
Total labor & taxes $9400

Rent $2400
(common area maintenance)
Insurance $50
Electric $150
Utilities (Gas, Water, Trash) $150
Phone & Internet $219
Subscriptions & Mags $50
Printing $65 (buz cards, brochures, invoices\letterhead to print invoices)
Computer supplies (disks, cables, ribbons and such) $80
Cleaning supplies (bathroon cleaning and floors) $30
Repairs and maintenance (includes window cleaner) $30
Professional service (pest control, acctg, lawyer) $175
Bank and visa fees $489
Uniform shirts embroidered $55
Advertising $2900

This store usually netted close to $9900 a month give or take a hundred or two.

[TechMonster]

Thanks for the example.. Will help me lay things out..
Travis

[Tony_Scarpelli]

Travis,

If you are opening an office location the rent will be much much smaller as a real number and a % of sales....Retail is about twice as much as office rent.

My first store was $500 rent, utilities, phone, cell phone were all the same as the big store gross sales were not quite $10k but built to about $15k within 9 months.

I try to spend about 10-15% of gross sales on advertising. I used to put 8% into yellow pages but lately yellow pages has not paid off. You do need directory listings. YP.com; and such, google, yahoo.

If you have small mags like west side story free magazines try and do some cheap advertising in there.

Business journal if you are targeting Business (hard to do).

I have mixed feelings whether its better to have a 2nd class retail location and spend bit more on advertising or have a 1st class retail (next to Starbucks) where there is plenty of traffic.

Basically rent and advertising should not exceed 25% of gross on the aggressive side and conservatively about 18% of gross.

I like periodicals like Penny saver or pennypower because i could spend a small amount every week, have specials and when i have more cash i can sometimes do full page front or rear page ads. Find a good one and don't jump around between print sources.