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Rural Entrepreneurs - Writing Your Small Business Plan

Rural Entrepreneurs - Writing Your Small Business Plan

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Published by Chuck Achberger
How to write a small business plan
How to write a small business plan

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Published by: Chuck Achberger on Sep 25, 2009
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01/04/2013

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It is harder to calculate variable costs than start‐up and fixed costs. Variable costs
are the per product cost of production. For example, one variable cost for a business
making and selling birch syrup is the cost to produce one bottle or jar of syrup. A
variable cost for a bed and breakfast is the cost of food per customer. The lower
your variable costs, the more profit per sale you gain. Repeat this exercise for each
product or service your business sells.

VARIABLE COST  PRODUCT 1

Cost Per Product/Service

TOTAL VARIABLE COST PER PRODUCT 1:

To calculate your yearly variable cost, use the following formula:

Total Variable Cost = Total No. of Product 1 Sold x Variable Cost of Product 1

TOTAL YEARLY VARIABLE COSTS FOR PRODUCT 1 = $_______________

Writing Your Small Business Plan

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