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PDF Editor FAQ

What is a projected profit and loss statement in relation to the business plan?

A profit & loss statement is only one tiny slice of a business plan (maybe 3–5 pages of a 40 page document). A business plan covers a very broad range of subjects.A business plan is a broad strategic document that covers everything from operations to marketing to personnel planning to the financial statement forecasts.The table of contents for a typical business plan might cover something like:Executive summary & investment highlightsIndustry analysisAudience demographicsCompetitor analysisProduct and value propositionCompetitive advantages / disadvantagesBusiness risksPartners / sponsorsMarketing planLegalTeam, hiring plan & advisorsFinancial statements (here’s your profit and loss statement!)But keep in mind, financial statements include the profit & loss statement, cash flow statement, capital expenditure layout and balance sheet.So the P&L is just a small slice of a small slice.HOWEVER, if the business doesn’t have a profitable business model (or a plan to become profitable), then the whole plan is bad.So the P&L is very important!Hope this helps!

What does top line and bottom line mean?

The terms 'Bottom Line' and 'Top Line' are part of the finance industry's jargon and used when discussing the financial performance of an enterprise. In essence, the 'Bottom Line' refers to the net income or net profit of an enterprise, while the 'Top Line' refers to the gross sales or revenues generated by the activities of the enterprise.They each get their names from their relative positions on the financial report known as the Income Statement or Profit & Loss Statement.If you like, the 'Bottom Line' income is what remains from the 'Top Line' revenues, after expenses have been deducted.'Bottom Line' as a financial performance measure, describes how efficient an enterprise has been in controlling its costs.'Top line', on the other hand, as a financial performance measure, only reports on how effective an enterprise has been in generating sales/revenues.

Are you satisfied with your current job and the salary you receive for it? What is the eligibility for that job?

I worked for a multi-national IT company in India for three years, for a salary of Rs.26,000 per month ($390). My brother used to make 25 times more money than me and my father 8 times more money than me.My dad spent more money on my education than on my brother’s (being a merit student, he had scholarships throughout).I used to get lot of judgmental comments from friends and relatives comparing me with my brother and dad. I always used to give them one answer : ‘This is life - this is not a profit and loss statement. I love my job and that is all matters.’ Yes, I was satisfied with my salary.

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