Determine what your products and services will cost and develop your Cost of Goods Sold (COGS) Element.

View the Example: Cost of Goods Sold

Action

To complete this Element you will need to have completed your Sales Forecast and revisit the Pricing and Pricing Strategy Element and the table of costs, prices, mark-ups and COGS percentages. Using your sales projections and the COGS for each unit, then:

1. Work with each unit individually to calculate the COGS for Month One by multiplying the number of units forecasted by the COGS percentage.
2. Repeat task one for each unit for the first twelve months of business.
3. Total the COGS for all units at the bottom of your table.
4. Transfer the total COGS figures to the COGS line in both your Cash Flow Forecast and in your Projected Income Statement.

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