What is the Sales to Inventory ratio Template and why is it important in a business plan for a small business like A Touch of Tuscany?"

The Sales to Inventory Ratio template gives a small business owner like Jack Gordon the ability to give the readers of the business plan a very clear idea of just how well Sales have been performing when covering the amount of inventory that a small business like A Touch of Tuscany has to carry. The great advantage of the template is that it gives the reader a numerical as well as graphic representation of what the Sales to Inventory ratio will be like for the three years for which the financials are being projected.

What calculations go into the Sales to Inventory ratio Template for a Full Service Restaurant business?

There are only two pieces of data that a small business owner like Jack Gordon has to put together in order for the template to work. The first is the projected sales figures for the small business for the three coming years and the second is of course the inventory. In the case of a new business, you can make an estimate of what the inventory should be like and in the case of established businesses, a projection can be made based on the numbers for past years.

Once the Sales and Inventory numbers are entered into the template, the template will automatically calculate the ratios and update the chart showing the ratio for the three years. You can click on the output tab and select the output which in turn can be copied and pasted into your business plan word document directly.

Quick Links:

1. Go to the Corresponding Questionnaire section for this industry.
2. Go to the Corresponding Business Plan section for this industry.