In a start-up, you will need to do some research regarding average operating costs and income. Look at other companies' annual reports or talk to other business owners regarding their expenses and their sales. Whether you are an established business or starting out, you should refer to "industry norms" as a point of comparison. Industry norms are composite financial figures derived by averaging the financial statements of companies grouped by industry and asset size.  In some cases the data is presented in actual dollar amounts; in others it is in ratios that compare actual financial figures such as assets to liabilities. These key ratios and statements are determined for a number of industry sectors in a few well-known titles:

o         RMA Annual Statement Studies – available in print at Fairfax County Library system, as well as online for a fee: RMA online

o        Almanac of Business and Industrial Financial Ratios by Leo Troy, available at our Cascades Library, in the reference collection.  

These ratios are invaluable when preparing a business plan. By using them you can estimate the figures you will need to create a Balance Sheet, a Profit and Loss Statement and a Cash Flow Statement.