Small business owner manager may prepare a profit plan well ahead of the financial year. For the purpose he should follow the step: 1. Established profit goal for the period. 2. Determine planned volume of sales. 3. Estimate expenses for planned volume of sales 4. Estimate estimated profit based on plans reached in 2 and 3. 5. Determine how cost very with changes in sales volume. 6. Determine how profits vary with changes in sales volume. 7. Analyze his alternatives form a profit standpoint.