Business Plan

boxercreations

I am writing my business plan for submission to the Galway rural development for application for Back to Work Enterprise Allowance.
Have a couple of things I am struggling with -
My business is service based and I'm the sole owner/operator, my biggest cost will be childcare - but as this is not a business expense per se do I leave it out or as my business will not operate without it does it get included & if so how?
My financials from the business look great until I factor in that I'll be paying someone a weekly wage to mind my 2 children.
Or am I confusing operating costs with profits?

I will also be doing a lot of driving - can I put all of my car expenses through as operating expense or just part of them?
thanks for any help.

TsuDhoNimh

boxercreations wrote: »

... but as this is not a business expense per se do I leave it out or as my business will not operate without it does it get included & if so how?

It's nothing to do with the business, so no has no relevance to your business plan.

Where this comes into play is in terms of the profit you forecast for your business and if this is enough to cover your overheads. It has nothing to do with how feasible or not the business is, but has to do with your personal decision of whether the business is the right venture for you to pursue at the moment.

boxercreations wrote: »

I will also be doing a lot of driving - can I put all of my car expenses through as operating expense or just part of them?

Any expenses that are incurred for the business are valid expenses, anything that isn't business related can't be expensed.

So if you're driving away from your normal place of work to visit a client you can expense it, if you're travelling to visit a family member you can't.

I'd suggest doing a little background research on the financial side of things and talking to an expert in the area (most accountants would provide a free initial consultation where you'd gain a lot of valuable information and insight on how viable the situation is).

boxercreations

TsuDhoNimh wrote: »

It's nothing to do with the business, so no has no relevance to your business plan.

Where this comes into play is in terms of the profit you forecast for your business and if this is enough to cover your overheads. It has nothing to do with how feasible or not the business is, but has to do with your personal decision of whether the business is the right venture for you to pursue at the moment.

Any expenses that are incurred for the business are valid expenses, anything that isn't business related can't be expensed.

So if you're driving away from your normal place of work to visit a client you can expense it, if you're travelling to visit a family member you can't.

I'd suggest doing a little background research on the financial side of things and talking to an expert in the area (most accountants would provide a free initial consultation where you'd gain a lot of valuable information and insight on how viable the situation is).

Thanks - I meant tax, insurance and repairs rather than petrol costs but I will try and find someone to talk to.

Gloomtastic!

boxercreations wrote: »

Thanks - I meant tax, insurance and repairs rather than petrol costs but I will try and find someone to talk to.

I've talked to, and paid for, the experts and I was told you can claim up to 85% of all your car expenses against business if you also use it for personal reasons.

If you're VAT registered, you can't claim the VAT off petrol but you can off diesel which is just plain wrong in my opinion!

TsuDhoNimh

Gloomtastic! wrote: »

... I was told you can claim up to 85% of all your car expenses against business if you also use it for personal reasons.

The % that's allowable is based on personal vs. business usage of the vehicle. So if you use it 50/50 for business/personal, you'd only be eligible to claim 50% of the expenses back.

There are a lot of details and nuances to it that speaking with a professional will identify specific to the OPs situation. It's definitely the way to go with it in my opinion.

Herbalist

I don't know if it is of help OP but Sage do a Planning For Business software and it is free of charge. The reason I mention it is that it will ask you to fill in different bits of information and then in the background it will put together the plan for you. It might make it a bit easier for you than having to worry about where things go or what structure to use and what information to include because it will take you through a template.

I am connected to the company.