PRICING YOUR TOURISM BUSINESS A PRACTICAL STEP BY STEP GUIDE TO HELP YOU COMPLETE THE TOURISM BOOST ONLINE PRICING TOOLS

Save this PDF as:
 WORD  PNG  TXT  JPG

Size: px
Start display at page:

Download "PRICING YOUR TOURISM BUSINESS A PRACTICAL STEP BY STEP GUIDE TO HELP YOU COMPLETE THE TOURISM BOOST ONLINE PRICING TOOLS"

Transcription

1 PRICING YOUR TOURISM BUSINESS A PRACTICAL STEP BY STEP GUIDE TO HELP YOU COMPLETE THE TOURISM BOOST ONLINE PRICING TOOLS

2 INTRODUCTION It is very important to price your tourism business correctly. Basing your pricing only on your competitor s prices and customer expectations is not enough. You also have to factor in all the expenses you occur to run a tour or let out a room, as well as the costs associated with running your business, such as marketing, licenses etc And, let s not forget about profit! You would not have started a business unless you planned to make money from it. Correctly pricing your tourism business will help you to cover all costs and generate the hard earned profit that you deserve. This step by step guide and the accompanying online tool will help you determine the point at which your tourism business breaks even and the ideal retail price to make a profit that you wish to achieve whilst factoring in all costs. This booklet is designed to help you complete the Tourism BOOST ONLINE PRICING TOOL. Just fill in all the blanks from step 1 through to step 6 and then transfer the information into the online tool. The tool will then automatically calculate key figures for you such as your net rate, retail rack rate and breakeven point. To get you started we have developed a multi-choice a quiz; test your pricing knowledge on the next page! This booklet also includes some activities along the way to help you get your pricing right. PRICING FACTORS TO CONSIDER The average price you sell your product for can vary, some of the factors that influence pricing are:- 1. SEASONALITY You may vary your price depending on high or low season. 2. OPERATING COSTS The higher your operating costs, the more expensive your prices will need to be so that you cover all expenses. 3. COMPETITION There is no point pricing your product out of the marketplace, you need to stay competitive or be able to justify the high price. 4. DEMAND People will pay more if there is a high demand in a region; similarly they will pay less if there is an abundance of choice.

3 QUICK QUIZ 1. FIXED COSTS ARE a. Prices that are set in advance b. Costs that need to be paid no matter how many tourists you carry or rooms you let c. Costs that occur depending on the number of tourists carried or rooms let 2. VARIABLE COSTS ARE a. Costs that change depending on how many tourists you carry or rooms you let b. Prices that change depending on seasonality c. Costs that change depending on suppliers 3. WHAT DOES AVERAGE CAPACITY MEAN IN RELATION TO TOURS? a. The maximum number of tourists per tour b. The minimum number of tourists per tour c. The average number of tourists carried or room let per tour 4. WHAT DOES OCCUPANCY RATE MEAN IN RELATION TO ACCOMMODATION? a. The maximum number of rooms occupied each night b. The minimum number of rooms occupied each night c. The average number of rooms occupied each night 5. WHEN PRICING YOUR TOURISM BUSINESS YOU SHOULD a. Consider what your competitors are charging b. Consider what tourists will actually be willing to pay c. Factor in all costs and determine your desired profit level d. All of the above 6. IS IT COMMON TO PAY COMMISSION IN THE TOURISM INDUSTRY a. Yes b. No 7. WHAT IS BREAKEVEN PRICE? a. The price you charge to travel agents b. The price at which you cover all costs c. The price you charge when customers book directly through you 8. IF YOU OPERATE THE BUSINESS SOLEY ON YOUR OWN WITH NO STAFF SHOULD YOU FACTOR WAGE COSTS INTO YOUR PRICING? a. Yes b. No YOUR SCORE /8 Answers at rear of booklet

4 INFORMATION YOU NEED TO PRICE YOUR TOURISM BUSINESS To successfully complete this step by step guide and the online pricing tool you need to have the following information readily available:- 1. TOUR OR ACCOMMODATION DETAILS You will need to provide information about your business, such as the different tour types you offer and the number of passengers or how many different room types you have. 2. DAILY COSTS (FIXED) You need to determine the fixed costs associated with operating your business, such as fuel, labour etc DAILY COSTS (VARIABLE) You need to determine the costs associated with taking passengers on tour or letting out rooms, such as meals, third party activities, linen and room cleaning 4. ANNUAL BUSINESS COSTS (FIXED) You need to calculate the total costs associated with operating your business. These costs occur whether you have tours operating or not, this is why they are called fixed. For example costs that are fixed include insurance, marketing, lease payments, bank fees, accounting fees, salaries etc AVERAGE CAPACITY If you have been trading for a number of years you should know your average capacity. If you are new to the industry you will have to estimate your future capacity based on factors such as visitation to the region, competitor analysis and customer feedback. NOTES

5 STEP 1 - CAPACITY To be able to effectively price your tourism product you need to identify some basic factors about your business, such as how often you run a tour or how many rooms you have. Fill in your answers to the questions below about the MAXIMUM CAPCITY for your business. TOUR OPERATOR How many different types of tour do you have available? Names of different tours MAXIMUM number of passengers per tour MAXIMUM number of times tour operates per year ACCOMMODATION PROVIDER How many different types of rooms do you have available? Names of different rooms Total number of rooms per room type

6 STEP 2 ACTUAL CAPACITY AND OCCUPANCY Now that we know your maximum capacity we need to work out realistically your actual capacity. For example, you may be able to carry 20 passengers on tour 365 days of the year, but chances are these are not your actual figures. You may only carry an average of 10 passengers and conduct the tour 300 days of the year. TOUR OPERATOR If you have been trading for a number of years you should know your average capacity. If you are new to the industry you will have to estimate your future capacity based on factors such as visitation to the region, competitor analysis and customer feedback. Names of different tours AVERAGE number of passengers per tour AVERAGE number of times tour operates per year ACCOMMODATION PROVIDER If you have been trading for a number of years you should know your average occupancy rate. If you are new to the industry it can be difficult to estimate your predicted occupancy. Use the Tourism WA Quarterly Tourism Snapshots to get the average occupancy rates for your region Names of business AVERAGE occupancy rate per room type %

7 STEP 3 - FIXED AND VARIABLE COSTS WHAT IS A FIXED COST? Fixed costs DO NOT vary, they stay the same no matter how many rooms you let or tourists you carry. It does not matter if you carry 1 or 20 passengers the costs will STAY THE SAME. It does not matter if you let out 1 room or 10 the costs will STAY THE SAME. WHAT IS A VARIABLE COST? Variable costs CHANGE, they are dependent on how many rooms you let or tourists you carry. If you carry 10 passengers the costs will be different to if you carry 20. Or, if you let out 1 room, as opposed to all your available rooms, the costs will change. ACTIVITY FIXED VS VARIABLE COSTS Using the examples below tick () which costs are fixed and which are variable. Example cost Fixed Variable Fuel for a bus tour Wages for a bus tour Meals whilst on tour Room cleaning Activities whilst on tour National park permits Vehicle registration Amenities for rooms (soap, shampoo etc...) Cleaning of room linen Answers at rear of booklet You will now need to determine your own fixed and variable costs. If you have been in business for a while you should know your figures, if your business is new you will need to obtain quotes and give rough estimates. Use the tables on the next page to enter all your fixed and variable costs for each tour or room type and then when you are ready enter the details into the Tourism BOOST online pricing tool to help you determine your final pricing results.

8 TOUR OPERATOR FIXED AND VARIABLE COSTS PER TOUR Names of different tour types FIXED COSTS VARIABLE COSTS Labour Fuel Other Meals Activities Other ACCOMMODATION PROVIDER VARIABLE COSTS PER ROOM TYPE Names of different rooms Linen cleaning Room cleaning Amenities Other NOTES

9 STEP 4 - ANNUAL BUSINESS COSTS The next step is to calculate the total costs associated with operating your business. These costs occur whether you have passengers on your tour or not, this is why they are called fixed. For example: insurance, marketing, lease payments, bank fees, accounting fees, etc... If you have a profit/loss statement you can use the latest report from your accountant, if you are new to the industry use the table below to help you estimate your ongoing annual expenses. Operating Expenses Item Amount Notes Accounting and legal fees $ Advertising and promotion $ Business loan payments $ Business travel and accommodation $ Depreciation $ Electricity and gas $ Employees' superannuation $ Equipment lease and hire purchase $ Insurance $ Interest and bank charges $ Membership to professional organisations $ Other business premises costs $ Printing, postage, stationery, packaging $ Registrations, licences and permits $ Rent of business premises $ Repairs, maintenance and cleaning $ Stationery and office supplies $ Taxes $ Telephone/internet connection $ Training $ Vehicle operating costs $ Wages and salaries $ Workers compensation insurance $ Other Expenses $ Total operating expenses $

10 HOW MUCH DO YOUR TOURS OR ACCOMMODATION CONTRIBUTE TO YOUR OVERALL BUSINESS? Some tourism businesses offer lots of different experiences for their visitors. For example, you might offer luxury safari camping and also cultural tours. So that you can price each element of your business accurately it is important to determine how much each element contributes to your overall business. In terms of percentage how much does the product you are pricing contribute. For example, if all your business does is offer tours then you would enter 100%. However, if you also offer activities or hire equipment you might enter 80%. Use the table below to help you determine the correct percentages. Tick which answer relates best to you and then apply a percentage figure to it. Business activity Percentage of business I only offer tours 100% I only offer accommodation 100% Accommodation is my core business, but I also offer some tours and activities. What percentage of your business is accommodation? Tours are my core business, but I also offer some other activities. What percentage of your business are your tours? % % NOTES

11 STEP 5 - MARK UP PERCENTAGE As mentioned earlier, one of the main aims of any business is to make a profit. The only way to do that is to correctly price your product, factoring in mark-up. There is no set figure for mark up; however the mark up you set needs to make you a profit on the one hand, yet be competitive on the other. You don t want your price to be radically different to that of your competitors if it is too cheap people may question your professionalism, if it is too expensive and doesn t offer more value you may lose customers. Below are some average net profit percentages for various tourism business, this information is based on the FMRC Business Benchmarks. The percentages below are calculated before any salary has been paid to the owner/operator. Type of business FMRC Net Profit Average Bus/coach transport 20% Caravan parks and camping grounds 22% Gift shop 14% Guest house operation 23% Motel/hotel operation 18% Restaurant operation 14% Travel agency service 25% Mark-up or profit is the most dynamic element of your pricing; you can return to this step later in the online guide and alter the mark up percentage to see how it affects your pricing. Based on the percentages listed above you should be calculating your figures using a mark-up of somewhere between 14% to 25%. NOTES

12 STEP 6 - COMMISSION Some tourism operators believe they save money by not paying commission to third-party sellers. But, here's another way to look at it - what do you lose by not paying commission? CONSIDER THESE SIMPLE QUESTIONS Is your website ranking highly and are you generating great international bookings directly? 2. Are you consistently full and happy with the way your business is performing? Answered YES to both these questions? Congratulations! Maybe you don't need to branch into the tourism distribution channels as you seem to be doing very well on your own. Answered NO? Maybe another sales avenue could be beneficial to you. Retail Travel Agents, Tour Wholesalers and Inbound Tour Operators can open up new markets for you in a very cost effective way. But they also need to be paid. Commission is usually the major source of revenue for retail travel agents, wholesalers, inbound operators and visitor centres. Tourism operators need to understand how commissions are divided between the different levels of sellers and allow for the payment of commission in their prices. Tourism operators do find it difficult to justify the commission required by some agents, yet the costs in accessing these markets are generally beyond the reach of small operators. For example, it can cost up to $10,000 to attend just one international tourism trade show. You need to weigh it up - Do you want to open up new markets? YES? Then the most cost effective way to do this is through the commission structure. HOW MUCH COMMISSION SHOULD I PAY? The level of commission varies depending who sells your product and which distribution method is used. For example, working directly with a Visitor Centre you will pay less than working with an International Tour Wholesaler. Here are the average commission levels payable to third-party sellers. Third party seller Average commission Travel agents/ Visitor centres 10% - 20 % Tour wholesalers 25% - 30% Inbound tour operators 25% - 30%

13 DIVERSIFYING YOUR INCOME STREAM "Don't put all your eggs in one basket" is a common phrase for investing, but it also applies to your business income. Diversifying your income stream is a great way to protect your business against the unknowns such as a downturn in the market, or loss of a major third-party seller. It is a good idea to spread your sales through avenues such as wholesalers, inbound tour operators, direct bookings, retail agents and Visitor Centres. Direct sales will give you instant money and help your cash flow. Tour wholesalers sometimes take four to eight weeks to pay an invoice which may impact on your cash flow. CALCULATING THE RIGHT COMMISSION FOR MY PRICING To ensure you price your business consistently you need to calculate the AVERAGE commission level you will be paying to third party sellers such as Inbound Tour Operators, Tour Wholesalers and Visitor Centres. Also factor in direct sales that do not incur any commission. You can then input this percentage into the Tourism BOOST online pricing tool. For example, if 80% of your sales come directly and only 20% through third party sellers you need to calculate the commission percentage accordingly. Use the table below to help you calculate the average commission you pay across all your sales avenues. Sales avenue Average commission Direct to consumer 0% Visitor Centre % Online travel agents % Tour wholesalers/iots % Other % AVERAGE COMMISSION To calculate your average commission add up all the percentages listed above and then divide by 5. Note: This is not an exact calculation method, but it will assist you in pricing your product more accurately.

14 RESULTS The final page of the Tourism BOOST online pricing tool is the results page. To help you understand your results use the glossary below. Glossary Breakeven price Net rate Recommended Retail Price (RRP) Breakeven number of PAX/ROOMS RevPar Meaning The price at which you cover all costs and breakeven. This figure does not factor in any profit to you or commission fees. The minimum selling price that covers all your costs and makes you a profit. This price does not factor in commission to third party sellers. This price covers all your costs, including profit and commission to third party sellers. It is the recommended price you should be selling your product for. This is the number of passengers you need to take on tour or rooms you need to let per night to cover all your costs and break even. Revenue per available room, or RevPAR for short, is a ratio commonly used to measure financial performance in the hospitality industry. The metric, which is a function of both room rates and occupancy, is one of the most important gauges of health among hotel operators. NOTES

15 ANSWERS QUICK QUIZ Q. FIXED COSTS ARE A. (b) Costs that need to be paid no matter how many tourists you carry or rooms you let Q. VARIABLE COSTS ARE A. (a) Costs that change depending on how many tourists you carry or rooms you let Q. WHAT DOES AVERAGE CAPACITY MEAN IN RELATION TO TOURS? A. (c) The average number of tourists carried or room let per tour Q. WHAT DOES OCCUPANCY RATE MEAN IN RELATION TO ACCOMMODATION? A. (c) The average number of rooms occupied each night Q. WHEN PRICING YOUR TOURISM BUSINESS YOU SHOULD A. (d) All of the above Q. IS IT COMMON TO PAY COMMISSION IN THE TOURISM INDUSTRY A. (a) Yes Q. WHAT IS BREAKEVEN PRICE? A. (b) The price at which you cover all costs Q. IF YOU OPERATE THE BUSINESS SOLEY ON YOUR OWN WITH NO STAFF SHOULD YOU FACTOR WAGE COSTS INTO YOUR PRICING? A. (a) Yes ACTIVITY FIXED VS VARIABLE COSTS Example cost Fixed Variable Fuel for a bus tour Wages for a bus tour Meals whilst on tour Room cleaning Activities whilst on tour National park permits Vehicle registration Amenities for rooms (soap, shampoo etc...) Cleaning of room linen

16 Small Business Development Corporation 140 William Street PERTH WA 6000 Telephone: (08) or Facsimile: (08)

Breakeven Analysis. Breakeven for Services.

Breakeven Analysis. Breakeven for Services. Dollars and Sense Introduction Your dream is to operate a profitable business and make a good living. Before you open, however, you want some indication that your business will be profitable, if not immediately

More information

Business finance. a practical guide BUILDING YOUR KNOWLEDGE. smallbusiness.wa.gov.au. The small business specialists

Business finance. a practical guide BUILDING YOUR KNOWLEDGE. smallbusiness.wa.gov.au. The small business specialists Business finance a practical guide BUILDING YOUR KNOWLEDGE Small Business Development Corporation 13 12 49 smallbusiness.wa.gov.au The small business specialists A practical guide to business finance An

More information

6.3 PROFIT AND LOSS AND BALANCE SHEETS. Simple Financial Calculations. Analysing Performance - The Balance Sheet. Analysing Performance

6.3 PROFIT AND LOSS AND BALANCE SHEETS. Simple Financial Calculations. Analysing Performance - The Balance Sheet. Analysing Performance 63 COSTS AND COSTING 6 PROFIT AND LOSS AND BALANCE SHEETS Simple Financial Calculations Analysing Performance - The Balance Sheet Analysing Performance Analysing Financial Performance Profit And Loss Forecast

More information

Are We There Yet? YOUR MARKETING PLAN. A Tourism Resource Guide

Are We There Yet? YOUR MARKETING PLAN. A Tourism Resource Guide Are We There Yet? KNOW WHERE YOU ARE GOING YOUR MARKETING PLAN A Tourism Resource Guide Know where you are going your Marketing Plan CONTENTS The Four P s of Marketing 4 Setting your marketing budget 6

More information

A guide to using the business plan template

A guide to using the business plan template A guide to using the business plan template Small Business Development Corporation 13 12 49 smallbusiness.wa.gov.au The small business specialists Writing your business plan This is guide is to assist

More information

BUSINESS PLAN. for. Name: Address: Date:

BUSINESS PLAN. for. Name: Address: Date: BUSINESS PLAN for Name: Address: Date: Executive Summary Last part to write! Brief / Concise / Relevant Tailor to audience Key messages / paragraphs Introduction / Description Benefits Market Research

More information

Pricing your tourism product

Pricing your tourism product Pricing your tourism product One of the key factors for success in the tourism industry is how you price your product. To ensure consumers purchase your product and distributors promote it, the price must

More information

5.2 BUDGETING; CASH FLOW FORECASTS. Introduction To Budgets And Cash Flow Forecasts. Cash Flow Forecasts. Budget And Cash Flow Exercises

5.2 BUDGETING; CASH FLOW FORECASTS. Introduction To Budgets And Cash Flow Forecasts. Cash Flow Forecasts. Budget And Cash Flow Exercises 52 FUNDING 5 BUDGETING; CASH FLOW FORECASTS Introduction To Budgets And Cash Flow Forecasts Cash Flow Forecasts Budget And Cash Flow Exercises Cash Flow Exercises P 168 INTRODUCTION TO BUDGETS AND CASH

More information

Understanding Costs. and Profit

Understanding Costs. and Profit Understanding Costs and Profit A guide to help you broaden your understanding of the most common types of business costs applicable in small businesses and how they influence profit margins Understanding

More information

As a guide, the following are examples of some of the expenses we can allow:

As a guide, the following are examples of some of the expenses we can allow: How do I know if I m self-employed? A person is self-employed if they are gainfully employed but are not under a contract of service with an employer. You may be a sole trader or in a business partnership.

More information

Export Business Plan Guide

Export Business Plan Guide Export Business Plan Guide Table of Contents Introduction... 4 SECTION 01: CURRENT SITUATION ANALYSIS... 5 Company Overview... 5 Availability of Resources... 6 SWOT Analysis... 9 SECTION 02: MARKET ANALYSIS...

More information

Financial Plan. A) Estimated One-Time Financial Requirements. Part One

Financial Plan. A) Estimated One-Time Financial Requirements. Part One Financial Plan The Financial Plan is perhaps one of the most important components of your Business Plan (see Business Plan Handout). Not only is it essential if you are seeking external financing it is

More information

Industry Report. Motels - 2014. Market intelligence specific to your industry. Provided by. Macquarie Business Accountants

Industry Report. Motels - 2014. Market intelligence specific to your industry. Provided by. Macquarie Business Accountants Industry Report Market intelligence specific to your industry Motels - 2014 Provided by Macquarie Business Accountants Industry Statistics Sector Overview 4 Industry Statistics 4 Employment Data 5 Key

More information

Cash Flow Forecasting & Break-Even Analysis

Cash Flow Forecasting & Break-Even Analysis Cash Flow Forecasting & Break-Even Analysis 1. Cash Flow Cash Flow Projections What is cash flow? Cash flow is an estimate of the timing of when the cash associated with sales will be received and when

More information

VAT guide should I register for VAT?

VAT guide should I register for VAT? VAT guide should I register for VAT? associates ltd Should I register for VAT? This guide will give you an understanding as to whether you should register, what the various schemes are for small businesses

More information

BUILDING A BUSINESS PLAN

BUILDING A BUSINESS PLAN BUILDING A BUSINESS PLAN Northern Savings Commercial Services Whether your business is just starting out or you re ready for a change, Northern Savings Commercial Services is an ideal partner and can provide

More information

This form is to be used where you do not have accounts, or if your income has changed since your last accounting period/set of accounts.

This form is to be used where you do not have accounts, or if your income has changed since your last accounting period/set of accounts. Self Employed Form This form is to be used where you do not have accounts, or if your income has changed since your last accounting period/set of accounts. You can bring this form to our offices, or send

More information

Fill in the Blanks Feasibility Study Worksheet

Fill in the Blanks Feasibility Study Worksheet Fill in the Blanks Feasibility Study Worksheet The Arizona SBDC Network is partially funded through a cooperative agreement with the US Small Business Administration. The SBA s funding is not an endorsement

More information

INTRODUCTION TO THE 2013 BENCHMARKING GUIDE

INTRODUCTION TO THE 2013 BENCHMARKING GUIDE INTRODUCTION TO THE 2013 BENCHMARKING GUIDE This guide is a supporting document for the Business Diagnostic Indicator for Hotels. It has been designed to be used by hoteliers who have completed the Business

More information

Basic Benchmarking Data Definitions

Basic Benchmarking Data Definitions Basic Benchmarking Data Definitions INCOME STATEMENT Actual Values Description Revenue 2012-13 2011-12 Operating Revenue Commonwealth Subsidies State Grants Resident/Client Charges Bond Retentions (if

More information

Bardi Management Group Pty Limited

Bardi Management Group Pty Limited Bardi Management Group Pty Limited Suite 5, 57 Bells Line of Road (Cnr Grose Vale Road) North Richmond, NSW 2754 PO Box 129 North Richmond, NSW 2754 Telephone (02) 4571 3599 Fax (02) 4571 2548 Index The

More information

Workbook 2 Overheads

Workbook 2 Overheads Contents Highlights... 2 Quick Practice Session on Overheads... 2 Financial Quiz 2 - Overheads... 3 Learning Zone Overheads... 3 Fixed and Variable costs and Break-even analysis explained... 3 Fixed Costs...

More information

PREPARATION for a BUSINESS PLAN

PREPARATION for a BUSINESS PLAN PREPARATION for a BUSINESS PLAN Successful small business expansions and new small business creations lead the way in sustaining existing jobs, forming new jobs, creating new markets and innovations that

More information

Business Plan Workbook

Business Plan Workbook Business Plan Workbook TABLE OF CONTENTS 1.0 OVERVIEW... 3 2.0 DESCRIPTION OF THE BUSINESS... 5 3.0 OWNERSHIP & MANAGEMENT... 7 4.0 MARKET & INDUSTRY OVERVIEW... 8 5.0 MARKETING PLAN & STRATEGY... 11 6.0

More information

Housing Benefit and Council Tax Reduction self employed earnings information

Housing Benefit and Council Tax Reduction self employed earnings information Housing Benefit and Council Tax Reduction self employed earnings information Mr Mrs Miss Ms Surname Forename Address (include flat no) Post code You can complete this Housing Benefit and Council Tax Reduction

More information

Sole Trader Guide. A complete accountancy service for the small business across the United Kingdom

Sole Trader Guide. A complete accountancy service for the small business across the United Kingdom Sole Trader Guide A complete accountancy service for the small business across the United Kingdom What is a sole trader A sole trader business (being self-employed) is the most simple business type and

More information

Understanding Financial Statements. For Your Business

Understanding Financial Statements. For Your Business Understanding Financial Statements For Your Business Disclaimer The information provided is for informational purposes only, does not constitute legal advice or create an attorney-client relationship,

More information

BUSINESS PLAN TEMPLATE

BUSINESS PLAN TEMPLATE PARRY SOUND AREA COMMUNITY BUSINESS & DEVELOPMENT CENTRE INC. A Community Futures Development Corporation 1A Church Street, Parry Sound, ON P2A 1Y2 Telephone: (705)746-4455 Toll Free: 1-888-746-4455 Fax:

More information

Housing Benefit And Council Tax Support Self-Employed Earnings Information

Housing Benefit And Council Tax Support Self-Employed Earnings Information Housing Benefit And Council Tax Support Self-Employed Earnings Information You have told us on your claim form you or your partner is self-employed. We need more information about your or your partner

More information

Chart of Accounts - Sole Trader

Chart of Accounts - Sole Trader Chart of Accounts - Sole Trader The basic road map into any accounting system is the chart of accounts. It is this chart that helps establish the information that will be captured by your accounting system,

More information

Performance Review. Sample Company

Performance Review. Sample Company Performance Review Sample Company For the period ended 12/31/2017 Provided By Page 1 / 18 This report is designed to assist you in your business' development. Below you will find your overall ranking,

More information

Byron Shire Visitor Profile and Satisfaction Survey

Byron Shire Visitor Profile and Satisfaction Survey Byron Shire Visitor Profile and Satisfaction Survey Tourism Research Australia GPO Box 1564 Canberra ACT 2601 Phone: 6243 7745 Email: tourism.research@ret.gov.au Web: www.ret.gov.au/tra Table of Contents

More information

FINANCIAL INTRODUCTION

FINANCIAL INTRODUCTION FINANCIAL INTRODUCTION In earlier sections you calculated your cost of goods sold, overhead expenses and capital cost in order to help you determine the sales price of your product. In your business plan,

More information

Tom Serwatka, Business Advisor MV Small Business Development Center SUNY Institute of Technology serwatt@sunyit.edu 315-792-7557

Tom Serwatka, Business Advisor MV Small Business Development Center SUNY Institute of Technology serwatt@sunyit.edu 315-792-7557 Tom Serwatka, Business Advisor MV Small Business Development Center SUNY Institute of Technology serwatt@sunyit.edu 315-792-7557 1 Objectives of Presentation To walk you through the steps needed to create

More information

What is a business plan?

What is a business plan? What is a business plan? A business plan is the presentation of an idea for a new business. When a person (or group) is planning to open a business, there is a great deal of research that must be done

More information

to success To be successful in today s highly competitive tourism industry, you must attend to each of the following areas.

to success To be successful in today s highly competitive tourism industry, you must attend to each of the following areas. Steps to success To be successful in today s highly competitive tourism industry, you must attend to each of the following areas. Getting assistance In establishing and developing your tourism business,

More information

Housing Benefit and Council Tax Support Self-employed Income Form

Housing Benefit and Council Tax Support Self-employed Income Form Housing Benefit and Council Tax Support Self-employed Income Form If you want to claim Housing Benefit or Council Tax Support, fill in and return this form to tell us about any self-employment. Please

More information

Housing Benefit and Council Tax Reduction: Self-employed Earnings Form

Housing Benefit and Council Tax Reduction: Self-employed Earnings Form Office use only: HB/CTR ref: Housing Benefit and Council Tax Reduction: Self-employed Earnings Form Revenues, Benefits & Customer Services, PO Box 1354, 22-26 Clements Road, Ilford, Essex IG1 1LF PLEASE

More information

Rural Entrepreneur Assistance (REA)

Rural Entrepreneur Assistance (REA) Rural Entrepreneur Assistance (REA) Eligibility Criteria A. APPLICANT 1. Must be aged 18 or over, eligible to work in Canada, and a Manitoba resident. 2. Must develop and submit a sound business plan which

More information

Table of Contents. A Guide To Office Space & Business Centres Across London

Table of Contents. A Guide To Office Space & Business Centres Across London 1 A Guide To Office Space & Business Centres Across London Table of Contents Introduction Advantages of Renting London Office Space Location, Impression & Operations Office Space Where to Start Types of

More information

0450 BUSINESS STUDIES

0450 BUSINESS STUDIES CAMBRIDGE INTERNATIONAL EXAMINATIONS International General Certificate of Secondary Education MARK SCHEME for the October/November 2012 series 0450 BUSINESS STUDIES 0450/22 Paper 2 (Case Study), maximum

More information

Financing Entrepreneurial Ventures Part 1 Financial Plan & Statements

Financing Entrepreneurial Ventures Part 1 Financial Plan & Statements Financing Entrepreneurial Ventures Part 1 Financial Plan & Statements Barbara Peitsch Program Director, Univ. of Michigan Peter Scott Professor of Entrepreneurship/Consultant August 2015 Economic Empowerment

More information

Accruals and prepayments

Accruals and prepayments 5 Accruals and prepayments this chapter covers... In the last chapter we have looked at the preparation of financial statements or final accounts using the extended trial balance, or spreadsheet, approach.

More information

The Profit & Loss Account Accounting for Revenue & Expenses

The Profit & Loss Account Accounting for Revenue & Expenses The Profit & Loss Account Accounting for Revenue & Expenses Chapter 3 Luby & O Donoghue (2005) Profit & Loss Account The main reason why people set up in business is to make a profit. The profit and loss

More information

SMALL BUSINESS OWNER S HANDBOOK

SMALL BUSINESS OWNER S HANDBOOK SMALL BUSINESS OWNER S HANDBOOK PART II: FINANCIAL PLANNING FOR SMALL BUSINESSES Introduction Financial Planning Methods of Financing Your Business Other Types of Funds & Financing How to Approach Lenders

More information

A Sole Trader. Accounts. 31 December 2007

A Sole Trader. Accounts. 31 December 2007 Accounts 31 December 2007 Approval statement I approve these accounts which comprise the Profit and Loss Account, Balance Sheet and related notes. I acknowledge my responsibility for the accounts, including

More information

Online Distribution 101

Online Distribution 101 Topic Online Distribution Tutorial 38 Online Distribution 101 Getting a handle on tourism distribution, commissions and channel managers can be a bit daunting, but once you read this tutorial it will become

More information

BUSINESS PLAN TEMPLATE

BUSINESS PLAN TEMPLATE BUSINESS PLAN TEMPLATE Business Name: (Please provide details of owners / members involved) Name of owner(s): Address: Identity Number: Tel: ( ) Cell: 1 1. INTRODUCTION OF YOUR BUSINESS IDEA 1.1. Give

More information

*Financial Assessment Process Will Starting/Expanding Business Make Financial Sense?

*Financial Assessment Process Will Starting/Expanding Business Make Financial Sense? Research & Writing a Business Plan Financial Assessment Small Business Development Center University of Wisconsin Oshkosh College of Business Tel. 1-800-232-8939 (In Oshkosh, (920) 424-1453) Web Site:

More information

BUSINESS PLAN GUIDELINES START MY OWN BUSINESS

BUSINESS PLAN GUIDELINES START MY OWN BUSINESS BUSINESS PLAN GUIDELINES START MY OWN BUSINESS 1. Cover Page and Table of Contents The cover page of your business plan should include contact information such as your name, the name of your business,

More information

Business Plan. European Union European Regional Development Fund. Comhairle Contae an Chláir Clare County Council

Business Plan. European Union European Regional Development Fund. Comhairle Contae an Chláir Clare County Council Business Plan European Union European Regional Development Fund Comhairle Contae an Chláir Clare County Council Local Enterprise Office Clare Notes To Help Fill Business Plan Introduction This Business

More information

Ministry Of Finance VAT Department. VAT Guidance for Land and Property Version 4: November 1, 2015

Ministry Of Finance VAT Department. VAT Guidance for Land and Property Version 4: November 1, 2015 Ministry Of Finance VAT Department VAT Guidance for Land and Property Version 4: November 1, 2015 Introduction This guide is intended to provide businesses supplying land and property within The Bahamas

More information

INDEX: WWW.FIRSTBOOKKEEPING.COM.AU

INDEX: WWW.FIRSTBOOKKEEPING.COM.AU INDEX: ü Step 1 Getting started in business registrations Page 3-4 ü Step 2 What you need to know about business income tax Page 5 6 ü Step 3 Business Expenses what to claim Page 7 ü Step 4 Working from

More information

Housing Benefit & Council Tax Support Self-Employed Income Form

Housing Benefit & Council Tax Support Self-Employed Income Form Benefit Section, Wansbeck Square, Ashington, Northumberland, NE63 9XL Telephone: 0345 600 6400 Fax: 01670 620098 Website: www.northumberland.gov.uk Issued Received OFFICE USE ONLY Housing Benefit & Council

More information

Name: Business Plan for:

Name: Business Plan for: Name: Business Plan for: (Please use this template in conjunction with the guide Preparing a business plan) Document Version: Date: Completed by: Business plan contents Executive Summary.3 1 Executive

More information

Top 15 Business Tax Deductions by Daniel Vasin

Top 15 Business Tax Deductions by Daniel Vasin Top 15 Business Tax Deductions by Daniel Vasin Tax planning is an effective way to legally reduce tax before the end of the financial year. It s what Vasin accountants are mainly doing for its clients

More information

South Eastern Economic Development SEED Corporation

South Eastern Economic Development SEED Corporation South Eastern Economic Development SEED Corporation 80 Dean Street (Route 44), Taunton, MA 02780 SEED is a non profit finance corporation certified and accredited by the U.S. Small Business Administration

More information

Key Performance Indicators

Key Performance Indicators Key Performance Indicators A guide to help you understand the key financial drivers in your business Running any business effectively requires good decision making which is based on good and timely management

More information

Full cost recovery. Poor financial management ie being unable to work out what the true costs are and therefore pricing products and services too low.

Full cost recovery. Poor financial management ie being unable to work out what the true costs are and therefore pricing products and services too low. Full cost recovery What is full cost recovery? Social enterprises trade for a social (or environmental) purpose. This means that your services or products address a specific issue in your community or

More information

How to calculate your taxable profits

How to calculate your taxable profits Helpsheet 222 Tax year 6 April 2013 to 5 April 2014 How to calculate your taxable profits A Contacts Please phone: the number printed on page TR 1 of your tax return the SA Helpline on 0300 200 3310 the

More information

Paper F5. Performance Management. Monday 2 June 2014. Fundamentals Level Skills Module. The Association of Chartered Certified Accountants

Paper F5. Performance Management. Monday 2 June 2014. Fundamentals Level Skills Module. The Association of Chartered Certified Accountants Fundamentals Level Skills Module Performance Management Monday 2 June 2014 Time allowed Reading and planning: Writing: 15 minutes 3 hours ALL FIVE questions are compulsory and MUST be attempted. Formulae

More information

BUSINESS PLAN TEMPLATE

BUSINESS PLAN TEMPLATE iplanner.net Small Business Plans Online BUSINESS PLAN TEMPLATE For a start-up company 18/01/2012 12:33:19(GMT) Executive Summary... 3 Business Overview... 3 Products and Services... 3 Sales Forecast...

More information

Advice for the self-employed on Housing Benefit and Council Tax Reduction

Advice for the self-employed on Housing Benefit and Council Tax Reduction Advice for the self-employed on Housing Benefit and Council Tax Reduction What does self-employed mean? Someone who is self-employed works for an income but is not employed under a contract and does not

More information

6.1 UNIT COST CALCULATIONS AND THE BREAK EVEN. Working Out Costs - The Terminology. How To Work Out Your Break Even Point

6.1 UNIT COST CALCULATIONS AND THE BREAK EVEN. Working Out Costs - The Terminology. How To Work Out Your Break Even Point 6.1 COSTS AND COSTING 6 UNIT COST CALCULATIONS AND THE BREAK EVEN..... Working Out Costs - The Terminology How To Work Out Your Break Even Point Costing And Break Even Exercise Costing The Job Exercises

More information

Business Plan Booklet

Business Plan Booklet Business Plan Booklet 80 Dean Street Taunton, MA 02780 www.seedcorp.com SEED is a non-profit finance corporation certified and accredited by the U.S. Small Business Administration (SBA) This Business Plan

More information

Pricing Products and Services

Pricing Products and Services Pricing Products and Services Pricing products and services is a challenging process f most new home-based business owners. Often entrepreneurs will underestimate the value of their time and expertise

More information

Investing in unlisted property schemes?

Investing in unlisted property schemes? Investing in unlisted property schemes? Independent guide for investors about unlisted property schemes This guide is for you, whether you re an experienced investor or just starting out. Key tips from

More information

To get started you will need a box of file folders or a box of 8 ½ x 11 envelopes.

To get started you will need a box of file folders or a box of 8 ½ x 11 envelopes. Proprietorships, Partnerships, and Small Corporations Getting Organized - The Basics What your Accountant (and Canada Revenue Agency) would like to see. Keeping track of your day to day business operations

More information

2015 PERSONAL INCOME TAX WORKSHEET

2015 PERSONAL INCOME TAX WORKSHEET 2015 PERSONAL INCOME TAX WORKSHEET TAXPAYER DETAILS Title Tax File Number Surname of Birth First Name Best Contact Number ( ) Other Name/s Or Mobile Telephone Occupation (not Title) Residential Address

More information

Alabama Trucking Association Workers Compensation Fund P. O. BOX 241605 Telephone: (334) 834-7911 MONTGOMERY, AL 36124 Facsimile: (334) 834-7931

Alabama Trucking Association Workers Compensation Fund P. O. BOX 241605 Telephone: (334) 834-7911 MONTGOMERY, AL 36124 Facsimile: (334) 834-7931 Alabama Trucking Association Workers Compensation Fund P. O. BOX 241605 Telephone: (334) 834-7911 MONTGOMERY, AL 36124 Facsimile: (334) 834-7931 Motor Carrier Application A Complete ATA Workers Compensation

More information

Personal Income Tax Return Year End Questionnaire 2013

Personal Income Tax Return Year End Questionnaire 2013 Personal Income Tax Return ear End Questionnaire 2013 To assist us in preparing your income tax return, please use this questionnaire as a checklist when you compile your information. With respect to your

More information

Chapter 9 E-Commerce: Digital Markets, Digital Goods

Chapter 9 E-Commerce: Digital Markets, Digital Goods 1 Chapter 9 E-Commerce: Digital Markets, Digital Goods LEARNING TRACK #: 2: BUILD BUSINESS PLAN There are lots of different ways to lay out a business plan. The sample

More information

Banking for charities

Banking for charities Banking for charities Information for people who manage the financial affairs of a charity or voluntary organisation INSPIRING FINANCIAL LEADERSHIP Welcome This leaflet is for people who manage the financial

More information

Developing your Budget. Third Sector Workbook 5

Developing your Budget. Third Sector Workbook 5 Developing your Budget Third Sector Workbook 5 The Third Sector Workbook Series This publication is one of a series of workbooks that have been developed to help organisations to manage their activities

More information

How Financial Statements Tie Together www.financewithoutfear.com

How Financial Statements Tie Together www.financewithoutfear.com Let s talk about the three primary financial statements for any small business; the Cash Flow Statement, the Profit and Loss Statement, and the Balance Sheet. We will use a business called Bonnie s Beachwear.

More information

2014 Tax Questionnaire

2014 Tax Questionnaire Heffernan Crawford Accountants 2014 Tax Questionnaire Make your 2014 Tax Return easy For just 250* Completing Heffernan Crawford Accountants "2014 Tax Questionnaire" can save you time and money in preparing

More information

DEPARTMENT OF SOCIAL SERVICES DIVISION OF LICENSING PROGRAMS. BUDGET PLANS FOR OPERATION OF A CHILD DAY CENTER (Model)

DEPARTMENT OF SOCIAL SERVICES DIVISION OF LICENSING PROGRAMS. BUDGET PLANS FOR OPERATION OF A CHILD DAY CENTER (Model) DIVISION OF LICENSING PROGRAMS FOR OPERATION OF A CHILD DAY CENTER (Model) A. Start Up Costs Renovation of Property Furniture Equipment Supplies (Initial Stock) Children's Supplies Cleaning and Maintenance

More information

Income from self-employment

Income from self-employment P.O. Box 60 Bexhill-on-Sea East Sussex. TN39 3ZF Telephone (01424) 787740 Facsimile (01424) 787755 Email: benefits@rother.gov.uk Name Address FOR OFFICE USE ONLY Claim Ref. Date issued Postcode Issuing

More information

How to Prepare a Cash Flow Forecast

How to Prepare a Cash Flow Forecast The Orangeville & Area Small Business Enterprise Centre (SBEC) 87 Broadway, Orangeville ON L9W 1K1 519-941-0440 Ext. 2286 or 2291 sbec@orangeville.ca www.orangevillebusiness.ca Supported by its Partners:

More information

Basic Business Plan Outline

Basic Business Plan Outline Basic Business Plan Outline A business plan needs to be a well thought out, honest, appraisal of the business and opportunity. This outline is meant to be used for your road map. It should be a living

More information

WHY WRITE A BUSINESS PLAN?

WHY WRITE A BUSINESS PLAN? KANSAS SMALL BUSINESS DEVELOPMENT CENTER PITTSBURG STATE UNIVERSITY PITTSBURG, KS 66762 PHONE: 620 235 4920; FAX: 620 235 4919 e mail: ksbdc@pittstate.edu WHY WRITE A BUSINESS PLAN? A business plan is

More information

Team Steps to Success Skills for running and sustaining your childcare business. Business. success for. Pricing your childcare service.

Team Steps to Success Skills for running and sustaining your childcare business. Business. success for. Pricing your childcare service. Team Steps to Success Skills for running and sustaining your childcare business Pricing your childcare service Business success for Childcare Welcome to Team Steps to Success Team steps to success is a

More information

Paper F6 (HKG) Taxation (Hong Kong) Monday 7 June 2010. Fundamentals Level Skills Module. The Association of Chartered Certified Accountants

Paper F6 (HKG) Taxation (Hong Kong) Monday 7 June 2010. Fundamentals Level Skills Module. The Association of Chartered Certified Accountants Fundamentals Level Skills Module Taxation (Hong Kong) Monday 7 June 2010 Time allowed Reading and planning: Writing: 15 minutes 3 hours ALL FIVE questions are compulsory and MUST be attempted. Tax rates

More information

Self-Employed Earnings Information Form

Self-Employed Earnings Information Form 1 Claim reference number Self-Employed Earnings Information Form Please fill in this form if you or your partner is self-employed. If you are both self-employed in different businesses you should each

More information

GENERAL GUIDELINES FOR DEVELOPING A BUSINESS PLAN

GENERAL GUIDELINES FOR DEVELOPING A BUSINESS PLAN GENERAL GUIDELINES FOR DEVELOPING A BUSINESS PLAN August 2012 Table of contents Introduction... 3 1. Executive Summary... 3 2. Business Summary... 3 2.1 Company Summary... 3 2.2 Management Summary... 3

More information

Your business plan. helping you with your business planning and forecasting. Name of business. Date when completed

Your business plan. helping you with your business planning and forecasting. Name of business. Date when completed Your business plan helping you with your business planning and forecasting Name of business Date when completed Please read the following notes before completing the form. (You may wish to talk to an accountant

More information

Buying a business. a practical guide BUILDING YOUR KNOWLEDGE. smallbusiness.wa.gov.au. The small business specialists

Buying a business. a practical guide BUILDING YOUR KNOWLEDGE. smallbusiness.wa.gov.au. The small business specialists Buying a business a practical guide BUILDING YOUR KNOWLEDGE Small Business Development Corporation 13 12 49 smallbusiness.wa.gov.au The small business specialists Buying a business The option to buy an

More information

Performance Review for Electricity Now

Performance Review for Electricity Now Performance Review for Electricity Now For the period ending 03/31/2008 Provided By Mark Dashkewytch 780-963-5783 Report prepared for: Electricity Now Industry: 23821 - Electrical Contractors Revenue:

More information

BREAK-EVEN ANALYSIS. In your business planning, have you asked questions like these?

BREAK-EVEN ANALYSIS. In your business planning, have you asked questions like these? BREAK-EVEN ANALYSIS In your business planning, have you asked questions like these? How much do I have to sell to reach my profit goal? How will a change in my fixed costs affect net income? How much do

More information

Turnover between 320,000 and 13,000,000 ( 250,000) and ( 10,000,000)

Turnover between 320,000 and 13,000,000 ( 250,000) and ( 10,000,000) Accounts Information for General Traders Turnover between 320,000 and 13,000,000 ( 250,000) and ( 10,000,000) File Returns and Accounts Information online at www.revenue.ie Revenue On-Line Service Paper

More information

Jump Start Micro- Enterprise Credential Key Financial Concepts Student Handout (Updated: July 2016) Types of Ownership

Jump Start Micro- Enterprise Credential Key Financial Concepts Student Handout (Updated: July 2016) Types of Ownership Jump Start Micro- Enterprise Credential (Updated: July 2016) Sole Proprietorship (or Partnership) Corporation Limited Liability Corporation (LLC) Types of Ownership An individual (or group of individuals)

More information

Limited Company Guide

Limited Company Guide Limited Company Guide A complete accountancy service for the small business across the United Kingdom What is a limited company? A limited company is a type of business whereby the owner s liability is

More information

Cash budget Predict the movements of cash received and paid for over a period of time. Financial statements

Cash budget Predict the movements of cash received and paid for over a period of time. Financial statements Achievement Standard 90976 Demonstrate understanding of accounting concepts for small entities ACCOUNTING. Externally assessed 3 credits Accounting 90976 (Accounting.) involves the recognition, definition

More information

BUSINESS SEMINAR SECURE YOUR BUSINESS AND FUTURE. www.idealtax.com.au

BUSINESS SEMINAR SECURE YOUR BUSINESS AND FUTURE. www.idealtax.com.au BUSINESS SEMINAR SECURE YOUR BUSINESS AND FUTURE www.idealtax.com.au SEMINAR OUTLINE 1. Federal Budget 2011 2. Small Business Benchmarks 3. Small Business Concessions 4. Tax Return Tips 5. Superannuation

More information

Freda is the manager of a busy hotel serving business and leisure customers with a range of conference and leisure facilities.

Freda is the manager of a busy hotel serving business and leisure customers with a range of conference and leisure facilities. This question is set in a common service environment - the hospitality sector. As you prepare an answer, think about how the principles of optimising inputs and outputs can be applied to any organisation.

More information

Your Benefit Reference Number: About your partner (in the case of couples)

Your Benefit Reference Number: About your partner (in the case of couples) Housing Benefit And Council Tax Reduction Self-Employed Earnings Information PART ONE You have told us on your claim form you or your partner is self-employed. We need more information about your or your

More information

Business Plan Bootcamp. Four Simple Steps to Business Success: Workshop 2

Business Plan Bootcamp. Four Simple Steps to Business Success: Workshop 2 Business Plan Bootcamp Four Simple Steps to Business Success: Workshop 2 Version 1 Enterprise Growth Partnership Ltd 2014 Who s this workshop for? You re new to business ownership or selfemployment: You

More information

Handout # 2: Allocating Fundraising Expenses to the T3010

Handout # 2: Allocating Fundraising Expenses to the T3010 Handout # 2: Allocating Fundraising Expenses to the T3010 The following information is organized to assist a charity in allocating fundraising expenses to the appropriate reporting line on the T3010 Information

More information

Account Numbering. By separating each account by several numbers, many new accounts can be added between any two while maintaining the logical order.

Account Numbering. By separating each account by several numbers, many new accounts can be added between any two while maintaining the logical order. Chart of Accounts The chart of accounts is a listing of all the accounts in the general ledger, each account accompanied by a reference number. To set up a chart of accounts, one first needs to define

More information

Sapphire Coast Visitor Profile and Satisfaction Report: Summary and Discussion of Results

Sapphire Coast Visitor Profile and Satisfaction Report: Summary and Discussion of Results Sapphire Coast Visitor Profile and Satisfaction Report: Summary and Discussion of Results Introduction The Sapphire Coast Visitor Profile and Satisfaction (VPS) project was completed as part of the Destination

More information