The cost control section of your business plan indicates to the reader that you are carefully monitoring your expenses.

In this section, you should identify the areas of your business where the greatest needs and potential for cost control exist.  

Some important considerations for this section are:

>  Fixed costs - Costs that remain constant within a defined time period such as rent which remains constant for a defined time period, regardless of your sales level.  Ask yourself, what steps need to be taken to prevent an increase in fixed costs?

>  Variable costs - Costs that change in direct proportion to changes in productive output such as raw materials costs, that increase with sales increases or sales commissions based on a percentage of selling price vary in accordance to the sales volume.

>  The effect of inflation on your costs versus your prices.

>  The ability of employees to assist in or to limit cost cutting efforts.

There are a number of control techniques that can help you effectively build your business and increase profitability by controlling costs.  One of these is budgeting.  Businesses that establish and meet a budget based on historical and projected results will have more success at controlling costs.