ncial Plan The financial plan should start with a statement of the financial objectives of the venture, in terms of a target revenue or net profit level. The technical plan, generated in parallel with the marketing plan, will allow capital equipment lists and the resulting start-up budget to be prepared. Similarly monthly and annual operating budgets can be generated from supplies lists, manpower costs, etc. (Table 13-4). The results of the marketing plan and operating budget can be used to develop a number of cash flow projections, taking account of capital Table 13-4: Operating Cost Elements and Assumptions Operating cost item Business case assumption Comments Base station lease costs Negotiated costs per Covers the space required month per base station for equipment located indoors as well as antenna site lease cost Equipment surveillance Percentage (typically 5%) Maintenance and costs and maintenance of BS equipment cost, or will be higher for 7% of CPE cost if owned equipment which is by the network operator remotely located Network operations Percentage (typically 10%) Initial higher % reflects of gross revenue in first fixed start-up costs, later year, dropping (to 5-7%) years reflect stable in later years business position Sales and marketing Percentage (typically As for network operations costs (including 20%) of gross revenue customer support) in first year, dropping (to around 10%) after five years General & administrative Percentage (typically As for network operations costs 5-6%) of gross revenue in first year, dropping (to around 3%) after five years Implementing Wireless MANs Subscribers (Uptake curve b) 105.0 140.0 Monthly subscription Gross revenue 150.0 300.0 500.0 750.0 1050.0 1400.0 Base station leases 150.0 300.0 450.0 600.0 600.0 600.0 Equipment surveillance and maintenance 100.0 150.0 200.0 200.0 200.0 Network operations 105.0 140.0 Sales and marketing 100.0 100.0 100.0 150.0 210.0 280.0 General and administration Total operating costs 380.0 580.0 780.0 1070.0 1178.0 1304.0 Net cash flow -2