The business plan salary breakdown is traditionally shown in the document after the main components of the narrative. In other words, after your plan's executive summary, products and services description, market analysis, marketing overview, and description of management team members, you will arrive at a spot where you should generate a table that profiles the positions you will employ, their salaries, and the timeline for hiring these individuals. Where you know the person's name, feel free to slot that in directly, though in the grand scheme it's easier and more malleable to show the jobs by title (i.e., “Chief Technology Officer,” not Peter Howard). The two main components to the table are the salaries themselves and the point in the model (whether it's a 3-year, 5-year, or even longer forecast) at which you envision bringing these people on board.
For the salary information itself, you can use publicly-available information databases like salary.com to determine the approximate amount each position should be paid. These tools are useful, especially if you've never hired for the position in question before and don't know what the skillset you're seeking would command. On the other hand, for non-executive jobs in particular, remember that outsourcing, bundling tasks, and/or using 1099 contractors instead of full-time employees could be a cost-saving mechanism for your business. In the plan, this might mean the labor is shown as an expense on the P&L and cash flow but not as an itemized salary in your personnel plan. If you want to consult about how to present this data, need your plan reviewed, or simply want to outsource the headache to the experts, then call MasterPlans. We have been preparing advanced financial models since 2002 in Excel, Alight, and other software and we can help you get it right for your presentation. Call 877-453-2011.
