business plan pie chart

Pie Chart Defined: A Guide for Businesses

“The only worse design than a pie chart is several of them,” says Edward Tufte, noted statistician and professor emeritus of political science, statistics and computer science at Yale University. His 1983 book, “The Visual Display of Quantitative Information,” has long been held as a gold-standard reference for excellent communication. But is Professor Tufte right? Can the ubiquitous pie chart really be that bad? And is there anything a pie chart can do that a bar chart or line chart can’t do better?

The answer, of course, is that pie charts can, and do, play an important role in effective communication — in fact, one early use of pie charts helped expand human life expectancy by 50%. It’s just that they have their limits. Knowing those limits will help you become a better communicator and presenter.

What Is a Pie Chart?

A pie chart is a circular, graphical representation of data. It’s an attempt to convert a table of data into a memorable idea by using a circle — the “pie” — divided into sections, or slices. It’s ideal for communicating the composition of data. How are employees distributed among a company’s departments? How many employees work remotely vs on-site? When our business loses sales, how are the “wins” distributed among our top five competitors? What percentage of all votes were cast for each candidate in an election?

A pie chart’s greatest strength is how compactly and simply it can convey its idea. And therein lies the pie chart’s biggest limit: It must be at-a-glance simple. Can an underinformed person look at the pie chart and gain valuable information — or even insight?

Pie Chart vs Bar Chart:

Whether to use a pie chart or a bar chart depends largely on what question the chart is attempting to answer and how much information needs to be communicated. Pie charts are more effective at communicating the differences between numbers, so it’s important that the relative size of the pie slices be distinguishable at a glance. Pie charts are best used to represent a simple, single layer of information where the differences between the numbers are the entire story. Pie charts are not effective at surfacing trends.

Look at the pie chart immediately below, which breaks down the staff of a company by whether they are on-site or remote. It clearly shows that more employees are working on-site. What it doesn’t say could fill an HR manual. What was the breakdown a year or a month before? How does this fit in with the human resources (HR) department’s goals? But it is extraordinarily effective at answering the one question: What was the remote/on-site staff breakdown in July?

Unlike pie charts, bar charts can display multiple dimensions that communicate a larger story. A bar chart can take the same data displayed in the pie chart and expand it to monthly over the course of a year — allowing a much more nuanced picture to emerge.

If this company’s HR department has an initiative to get more staff working remotely, this chart shows great success. It’s easy to visualize that the trend is moving in the right direction. The dotted trendline simplifies communications even further. It would not be possible to display this much information in a pie chart.

So, while it’s clear the pie chart more effectively illustrates the breakdown for one specific month, the bar chart makes it much easier to see trends. For any given set of data, if the goal is for viewers to understand the information at a glance, it’s usually easy to decide whether a bar chart or pie chart is best for the job.

Key Takeaways

• Pie charts are most effective at displaying a simple idea, usually with no more than five data points.
• Because they can convey their ideas with powerful impact, pie charts can be very influential.
• Intuitively, pie charts represent a whole, or 100%, so it’s important the slices add up to 100%.
• Many best practices contribute to the at-a-glance impact of a pie chart, but the most important is to keep it simple.

Pie Charts Explained

There is a variety of pie chart formats, but they all share these characteristics in common: They use a circle to represent the full, 100% set of data, which is then broken up into slices of different sizes, each of which represents a portion of the whole. Pie charts excel at helping to communicate differences in limited data sets. If the data shows a simple comparison among up to five items, a pie chart is a good, intuitive way for an audience to receive data. When data contains more than five portions, the differences between slices can be harder to discern, diminishing the visual impact of the chart’s main idea. In such cases, it’s often best to combine multiple data points into a single “Other” slice.

When telling a more complex story with data, an appropriate piece of that data could be turned into a pie chart as a tool to compel a reader to dig deeper into the data.

History of Pie Charts

The history of pie charts is more fascinating than many realize. A secret agent who plotted the collapse of the French economy with counterfeit money and the founder of modern nursing are but two of the intriguing historical characters who used pie charts to explain and advocate.

The first known pie chart was published in 1801 by Scottish engineer, political economist and secret agent William Playfair. It showed proportions of the Turkish Empire located in Asia, Europe and Africa prior to 1789. Playfair was no stranger to using graphics to interpret data and is credited with inventing the bar chart, area chart and line graph years before.

Playfair’s pie chart merely communicated data. It was not until half a century later that famed social reformer, statistician and founder of modern nursing Florence Nightingale used the pie chart to advocate change.

Her “Diagram of the Causes of Mortality in the Army in the East” wove many layers of data into a complex pair of pie charts — really what, today, we would call polar area diagrams — to show that improvements in sanitation in camps and hospitals during the Crimean War dramatically reduced the in-hospital death rate from disease. She used this diagram for the most modern of reasons: to argue before members of Parliament, who she knew would not read the data.

The consequences of her chart and efforts over the next 10 years led to sewage systems being installed in all English homes. This reduced the death rate so much that life expectancy in England climbed from 40 to 60 years old.

Since then, dozens of pie chart variations have been developed in attempts to tell bigger stories. Donut charts provide space in the center for additional information, exploding charts break single slices into more slices and spie charts superimpose one pie chart on another.

Today, a crisis of sorts of pie chart overuse has resulted from spreadsheets’ ability to let people point and click to render charts. By comparison, early pie charts were the result of years of study.

When to Use a Pie Chart

Pie charts are best used to display a simple set of information where there are not many points of data. They excel at a comparison of two to five elements. They are particularly useful for visualizing the difference between data points, whether that difference is extreme (respondents split 70/30) or narrow (respondents split 50/50).

Probably the first thing to ask when thinking of using a pie chart is whether another type of graphic might be better suited. Is there trending information in the data? Pie charts are not able to display trending information so consider a line or bar chart instead. Is it a comparison of data elements from one line in a spreadsheet? In this case, a pie chart may work as long as there are not too many elements being compared.

Benefits and Drawbacks of Pie Charts

It’s important to remember that pie charts can tell only a fraction of a whole story, which may sound like a drawback but can become a benefit when this limitation is used to advantage. A well-executed pie chart integrated into an effective story can intrigue the viewer into wanting to learn more. Here’s a look at other pie chart benefits and drawbacks.

The main benefit of pie charts is that they can be intuitively understood. An underinformed audience can look at a well-designed pie chart and gain instant knowledge. Pie charts make it very simple for someone to compare data at a glance and see the composition of the data set. Pie charts can provide actionable information, as long as it can be distilled into simple, comparable points. Another benefit of pie charts is that they can distill data into a compact and convenient diagram that can be used as an element in telling a larger story.

The biggest drawback to pie charts is that they can effectively display only a very limited number of data points. They cannot display complex or extended sets of data because small percentages are difficult to discern. If the data being represented cannot be accurately displayed using just a few points, pie charts can mislead a viewer to inaccurate conclusions. A byproduct of a pie chart with too many points of data is that viewers start to focus more on trying to distinguish a small sliver of a slice than on understanding the meaning of the data itself.

Parts of a Pie Chart

Several components must surround the main data “pie” for a pie chart to communicate its information and main takeaway, if any. These components typically include:

Usually displayed across the top of a pie chart is the title, used to describe what the data represents. The title should be short and punchy and note any limitations to the data. “Staff: Remote vs On-site, July” is a good title because it describes everything about the data being illustrated, including that the data set is limited to one month. Some consider titles optional, but it is a good idea to take advantage of them to help people quickly understand what they are looking at or to drive home the chart’s main takeaway.

Pie charts sometimes benefit from a separate listing of what each slice represents. Such a legend can appear across the bottom or be stacked either to the left or right of the pie. The legend acts as a table of contents, enabling viewers to read through a list of everything that is included in the pie chart. Each legend item includes the color used for that element in the chart to help a user visually move from the legend to the data. Often, pie charts will omit the legend in favor of labeling the actual slices. A legend is also an easy way for a pie chart maker to see whether the pie chart has too many data points.

When applicable, it is important to provide attribution for the source of the data. This is often placed underneath the chart or at the end of a caption. The benefit of including source attribution is twofold: Giving credit to the data source is an academic (and sometimes legal) requirement and — more important — source attribution lends credibility to the pie chart.

No data, no pie chart — data is the heart of the chart. Remember, pie chart data should be simple and easy to interpret. Each point of data should be displayed as a slice of the pie, with each slice presented in a different color.

Data labels:

The slices of a pie chart often include a label specifying what percentage of the data set each slice represents. Depending on the purpose of the pie chart, this may or may not be a required element. It’s important to remember that the pie represents a “whole,” or 100%, so the labeled data needs to add up to 100%. If it does not add up to 100%, it may confuse viewers. The data label can also include the name of the slice. This is useful because it provides all of the information in one line, reducing the need for a viewer to constantly scan between the pie and its legend.

Types of Data or Statistics to Highlight With a Pie Chart

Given pie charts’ limitations, there is only a narrow definition of the types of data that they can display best. Generally, the data must represent different parts that compose some whole thing, such as all the sales of individual products that go into the total revenue of an ecommerce web site. The chart can then illuminate each product’s, or each product category’s, contribution to total sales.

Important characteristics of the type of data best suited to pie charts include:

Categorical: The data must have distinct categories that are related to each other. Five categories is a good limit for maximum visual impact; going beyond 10 might render the chart confusing.

One set of data: A pie chart cannot show multiple data sets.

No negative values: If there are negative values, a pie chart will not work.

Avoid zero-values: While they will display on a pie chart, a zero renders no slice, so it makes the chart confusing.

6 Pie Chart Best Practices

These 10 best practices for pie charts all contribute to one goal: Keep it simple. They include suggestions for ways to keep it simple, as well as tempting visual tricks to avoid because they usually end up getting in the way between viewers and their clear interpretation of the information.

Limit slices: Try to include no more than five slices. More than five makes the pie chart harder to read and may muddy the message.

Use different size slices: Pie charts are good at displaying the differences among slices, so they perform best when the data points are dissimilar.

Sum to 100%: Visually, the pie represents a whole. If your displayed data adds up to more or less than 100%, the credibility of the pie chart will be questioned.

Use percentages: Because pie charts always display parts of a whole, data labels showing absolute numbers cause confusion. Use percentages in data labels.

Use “Other” slice: If there are more than five data points, consider grouping the smallest data points into an “Other” slice to maintain visual impact. But avoid a dominant “Other” slice, which reduces credibility, by going a bit beyond five slices to reduce the size of the “Other” slice.

Avoid multiple pies: Expressing comparisons via pie charts is usually confusing. If data comparison is needed, bar charts are much more effective.

How to Make a Pie Chart

Nowadays, most pie charts spring from spreadsheet programs such as Microsoft Excel. Good enterprise resource planning (ERP) systems and simpler accounting software programs can also produce pie charts for reports and dashboards, and function similarly. Here’s how to make a pie chart in Excel, explained in 10 discrete steps:

Open the spreadsheet containing the data for the pie chart. For this example, we used archival data from the US Small Business Administration (SBA) that looks at small business lending from 94 lending institutions in 2012, which was the last year for which the SBA released this information in CSV file format. Since then, it’s only available in PDF format. To follow along, download the CSV at https://catalog.data.gov/dataset/small-business-lending-in-the-united-states-2012.

Consider what data to convey in the pie chart. Our analysis identified two potential fields that would provide interesting data: total amount lent and total number of loans. Let’s display a pie chart showing the total number of small business loans by lending institution.

Since creating a pie chart in Excel requires labels and data to be in adjacent columns, copy the number-of-loans column and insert it next to the column with the name of the lending institutions.

Sort the table by the new numbers column, in descending order. Be sure to select the entire data set to maintain data integrity. What results is a list of lenders that have lent to small businesses in descending order of the total number of loans.

Select the names and associated amounts of the top five lenders. Note that lenders with no data will appear first so make sure to disregard them.

Go to Excel’s Insert ribbon and click the pie chart icon; the image below will appear. Select the first pie chart.

Presently, the pie chart shown here will appear in the center of the screen.

Highlight the chart title and enter in a title describing the chart. For example, “Top 5 Small Biz Lenders.”

To add labels, click on the chart itself and then right-click. The data labels will appear containing the amount from each column. We want the percentages, not the values, to show up, so right-click on the pie chart again and select “Format Data Labels.” Deselect “Values” and select “Percentages.” If these labels need to also contain the name of the slice, also click on “Category Name.”

Now the chart can be resized by grabbing one of the corners and dragging. It can also be copied-and-pasted into another program.

That final pie chart compares only the top five lending institutions — not the entire data set.

Pie Chart Examples

In addition to the pie charts already exemplified throughout this article, there is a wide variety of approaches graphic designers have created to give their charts visual pop or as an attempt to convey more information than basic pie charts can support. Here are four examples.

The Exploding Pie Chart:

This version of the common pie chart is used mainly for emphasis of a particular slice. It’s meant to call special attention. The creator of the chart below would use it to speak specifically about Wells Fargo & Co.

The Donut Chart:

A donut pie chart is exactly the same as a regular pie chart except it has a hollow center, providing a way to highlight specific additional information.

The 3D Pie Chart:

This graphical gimmick is useful for adding visual dimension to a report. But take care — it distorts the view of the chart so that some of the slices may appear larger than they really are. Note how the Bank of America slice looks larger than the Wells Fargo slice but, as the data shows, it is smaller.

The Sub-pie Pie Chart:

This chart enables presentation of more slices but results in a less readable graphic, due to added complexity. The example shows the top nine US small business lenders, three of which have been combined into an “Other” category in the larger chart. A secondary chart shows the breakdown of the “Other” category. More information is conveyed but at the cost of the pie chart’s main benefit: simplicity.

4 Tips for Creating Pie Charts

The key to effective pie charts is to keep them simple. Avoid trying to communicate anything beyond a label and its associated percent. People intuitively look at the whole pie as representing 100% and the slices as a percentage of the whole.

Avoid 3D: A 3D pie chart is harder to read because the added perspective distorts the sizes of the slices.

Group by size: Pie charts are most readable when slices are grouped by size. It’s best with the largest two slices abutting.

Use distinct colors: Different colors for each slice better distinguishes the differences between them. Use a comfortable color palate — you want the differences distinguished, not garish.

Don’t rotate text: Keep labels horizontal; angled text is difficult to read.

Free Pie Chart Template

Click the link button below to download an annotated Excel spreadsheet containing a template for creating classic, simple pie charts. The template uses best practices to generate a modifiable sample pie chart. Add and change categories, update the numbers, and the results display instantly on the sample chart.

Download template

Pie charts can be extraordinarily useful at showing very specific data, usually with a maximum of five data points. Pie charts are not meant to be the definitive representation of data but to contain enough information, as Florence Nightingale experienced, to get people who will never read the data to gain actionable understanding.

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Pie Chart FAQs

What are the alternatives to pie charts?

Line charts and bar charts are the most common alternatives to pie charts. They display more depth of information because they’re good at illustrating trending and timeline data, whereas pie charts are not.

What is a pie chart used for?

Pie charts are best at conveying a small data set that makes up a “whole” something — i.e., 100% of it. For example, the votes received by each candidate in an election, which add up to all the votes cast for that election. A pie chart is best used for simple, two-dimensional information with up to approximately five data points. They excel at portraying a specific point in time.

How do you calculate pie charts?

A pie chart is best calculated by representing absolute numbers as percentages. Unlike other chart types, pie charts intuitively represent a whole, or 100%, so having the categories shown in percentages helps make a pie chart more understandable at a glance.

Why are pie charts bad?

Pie charts are not effective for showing trending information. They are best used for simple comparisons between up to five data points. If more than five data points are used, a pie chart becomes clumsy and confusing.

How do you explain a pie chart with example?

When explaining a pie chart, it’s best to focus on the size of the individual slices. Whether the chart shows an even split between two categories or a wide difference between more categories, the best explanation focuses on the relative sizes of the slices. For example, a pie chart displaying the results of an email campaign might show that the entire pie is all recipients who clicked on the email, and the two slices show how many purchased vs how many did not.

What is a simple pie chart?

The simplest pie chart is one that gives a viewer an at-a-glance understanding of the data. Whether the pie chart contains two categories or five, a simple pie chart is easy to understand.

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Pie Restaurant Business Plan

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UPer Crust Pies

Executive summary executive summary is a brief introduction to your business plan. it describes your business, the problem that it solves, your target market, and financial highlights.">.

UPer Crust Pies will specialize in meat, vegetable and fruit pies made using old-country traditional family recipes from the UP – Michigan’s Upper Peninsula. Our pies will be baked fresh everyday and sold hot directly to customers through our retail stores. We will also sell frozen pies in lunch and family sizes that can be cooked at home in an oven or microwave. Our products are low fat and free of genetically modified ingredients and will be complemented by an assortment of fresh premium salads and desserts.

By importing our products directly from a private label bakery in the UP we avoid high labor costs, expensive investment in manufacturing and production equipment, and additional warehousing and production facility costs. Our major costs will be limited to product purchasing, shipping and cold storage.

We have plans to expand the company through further retail outlets and are focused on developing a business model that is favorable to franchise possibilities. With an exclusive import license that could be used to sell frozen product through supermarkets and bulk wholesale food chains, UPer Crust Pies could quickly and clearly establish itself as the market leader.

We have identified four main keys to our success. The first is to secure stores in highly visible locations. The second will be our unique value-for-money product line. The third will be a focus on superior customer service and education, and the fourth key will be employee retention through training and internal promotion.

The proposed business location for the first UPer Crust Pies store will be in downtown Yubetchatown. At this stage five possible sites are being considered in three areas. UPer Crust Pies will target three market segments within the core metro district. Our largest target market is young adults and business people (42%). Our next largest market, and the one with the greatest growth potential, is families with children (36%), and our final target market will be 15-24 year olds which includes students (22%).

Our marketing strategy will be to attract new customers, educate those customers and then create a loyal customer base. UPer Crust Pies will attract consumers through highly visible signage, print media advertising, flyers, entertainment book coupons, word-of-mouth advertising and strategic alliances.

Our sales strategy includes hiring employees who genuinely enjoy their jobs. We will continually assess all aspects of the business and interact with our customers personally, evaluating food choices for popularity and keeping favorites on the menu as we rotate weekly and seasonal specials.

UPer Crust Pies is a Limited Liability Company. All membership shares are currently owned by Lina and Olie Mackinac-Gogebic, with the intent of using a portion of shares to raise capital. UPer Crust Pies is currently seeking a bank loan with an additional private investment contribution from outside investors. The majority of these funds will be used for corporate design, remodeling and lease payments three months prior to opening.

Start-up costs include initial inventory for the first store including shipping and cold storage fees associated with the product. Equipment assets such as a commercial oven, pie warmers, ambient display cases, refrigerators, freezers and miscellaneous one-time furnishings must be purchased. In addition, UPer Crust Pies anticipates the need for liquid cash for operating expenses, unforseen expenses and to help cover wages for the first three months of business.

UPer Crust Pies has forecasted a modest growth rate for the first year of business. In the second year, the company will add two more stores and in the third year, an additional two stores. The addition of these stores will increase the gross revenue in the second and third years. Compared to industry standards we have forecasted a very conservative growth rate for the first three years of operations.

1.1 Objectives

• Achieve first year sales above $120,000.
• Maintain a healthy average gross margin.
• Develop a business model that is favorable to expansion.
• Establish five store locations by the end of the third year.

1.2 Mission

Customer satisfaction and education are our paramount missions. We will endeavor to meet the highest standards of excellence through superb customer service and consistent product delivery in a friendly and comforting environment.

We seek fair and responsible profit, enough to keep the company financially healthy and ensure continued growth and development.  Responsible profit will fairly compensate owners and investors for their risk and reward employees for their hard work, loyalty and commitment.

Employee welfare, participation, and training are equally important to our success. Every employee will be treated fairly, with dignity and the utmost respect. It is our responsibility to provide employees with a friendly, comfortable and challenging work environment with opportunities for growth and development.

1.3 Keys to Success

• Locations: visibility, high traffic patterns, convenient access.
• Store design: visually attractive, relaxed atmosphere, fast and efficient operations.
• Unique products: differentiation, competitive pricing, no direct competition.
• Quality controls: genetically modified free policy, consistency, clean presentation.
• Service: cheerful, professional, articulate and informative.
• Marketing: positive image, educational, word-of-mouth advertising.
• Employee retention: training, ongoing education, recognition programs.

See why 1.2 million entrepreneurs have written their business plans with LivePlan

Company summary company overview ) is an overview of the most important points about your company—your history, management team, location, mission statement and legal structure.">.

UPer Crust Pies is a specialty meat and fruit pie retailer importing its products from Michigan’s Upper Peninsula. At present there are only two small competitors servicing the entire U.S.A. UPer Crust Pies will offer hot ready-to-go meat and fruit pies and frozen take-home options as well as an assortment of fresh salads and cold beverages.

We are considering five possible locations for its first store in downtown Yubetchatown. The company has plans to expand with an additional four stores in the local megalopolis over the next three years. Implementing a sound business model into our first store will aid expansion plans and open up the possibility of franchising.

UPer Crust Pies is currently seeking a bank loan and an additional private investment contribution from outside investors and family members.

Major costs include initial inventory purchases, equipment purchases, shop rental, personnel wages, site remodeling, marketing and various other operating expenses. Projected gross sales for the first year of business are expected to be over $120,000.

2.1 Company Ownership

UPer Crust Pies is a Limited Liability Company. All membership shares are currently owned by Lina and Olie Mackinac-Gogebic, with the intent of using a portion of these shares to raise private investment through outside investors and family members.

If all funds are raised, based on the investment requirements established in the financial section of this plan, Lina and Olie Mackinac-Gogebic will maintain ownership of no less than 51% of the company.

Reinvestment of earnings will be the backbone of this business after start-up and will ensure future growth and achievement of the company’s goals. A second and possibly third round of private investment may be considered to aid the company’s expansion plans in years two and three of operations.

2.2 Start-up Summary

Start-up expenses and assets are shown below, and the majority of these funds will be used for corporate design, re-modeling and to pay rent for three months prior to opening.

No legal costs will be incurred as the owners have agreed to trade a stock option with the company’s legal counsel in return for on-going legal services.

Start-up assets include initial inventory for the first store including purchasing, packaging, shipping and cold storage fees associated with buying the product inventory. Purchases of equipment assets such as a commercial oven, pie warmers, ambient display cases, refrigerators and freezers and miscellaneous one-time furnishings are necessary. The company anticipates the need for liquid cash for operating expenses, unforseen company expenses and to help cover wages for the first three months of business.

UPer Crust Pies will specialize in quality pies and pastries, imported frozen from the Upper Peninsula of Michigan and baked fresh every day. The premium taste, presentation and quality of our pies will not only be unique in Yubetchatown and the greater megalopolis area, but in the entire United States.

UPer Crust Pies are low in fat, free of genetically modified ingredients and made with premium ingredients. After oven baking, pies are put into warmers and held at a steady temperature to ensure rapid service and high customer satisfaction.

The company will also sell frozen pies that can be taken home and cooked in an oven or microwave. New technology in manufacturing has enabled New Zealand producers to develop a pie that can be heated by microwave in less than three minutes with the pastry remaining flaky as if it had been cooked in a convection oven for thirty minutes.

Our pies experience will be complemented by an assortment of premium salads and desserts as well as cold beverages. Savory samples will also be offered to first-time visitors.

What is a Pie?

The meat pie is a traditional old-country food consisting of savory fillings in a pastry shell. Traditional fillings include beef and cheese, steak, bacon and egg, and chicken and vegetable to name a few.

Usually eaten hot from a paper bag, with flaky golden pastry and savory fillings, the pie is unpretentious comfort food. UPer Crust Pies will bring the Upper Peninsula pie experience to the U.S. and endeavor to establish the humble meat pie as gourmet fare for Americans while bringing a taste of home to “UPers” living throughout America.

The Menu

The Classic Pie Selection (6.25 oz)

• Beef : Lean savory ground beef in a smooth sauce with fresh herbs and spices in a low-fat pastry.
• Steak : Prime lean steak in rich hearty gravy wrapped in a low-fat flaky pastry.
• Chicken & Vegetable : Chicken breast with garden vegetables in creamy white sauce and wrapped in a low-fat flaky pastry.
• Bacon & Egg : One egg cracked on top of a lean slice of shoulder bacon wrapped in a low-fat flaky pastry.
• Potato Top : A traditional Shepherds pie with lean ground minced beef and a creamy mashed potato topping.
• Steak & Mushroom : Chunky steak prepared in a smooth dark sauce with fresh sliced mushrooms in a low-fat flaky pastry.
• Steak & Cheese : Chunky steak in a dark gravy mixed with pizza blended cheese and wrapped in a low-fat flaky pastry.
• Beef & Cheese : Ground beef in rich gravy mixed with pizza blended cheese and wrapped in a low-fat flaky pastry.

The Gourmet Pie Selection (9.5 oz)

• Thai Chicken : Succulent chicken breast in a creamy oriental sauce wrapped in a light low-fat flaky pastry.
• Bacon & Egg : Two whole eggs cracked on top of lean shoulder bacon, wrapped in a low-fat flaky pastry.
• Beef, Cheese & Tomato : Ground beef in dark gravy with low fat cheese, garden tomatoes and wrapped in a low-fat flaky pastry.
• Chicken & Vegetable : Succulent chicken breast and garden vegetables in a creamy white sauce wrapped in low-fat flaky pastry.
• Butter Chicken : Chicken breast in a smooth, creamy Indian delight prepared in a low-fat flaky pastry.
• Cracked Pepper : Prime strips of beef in rich creamy sauce complimented with spicy cracked pepper corns.
• Beef, Bacon & Double Cheese : Lean beef in a rich gravy, creamy cheese sauce and slices of bacon wrapped in a low-fat flaky pastry.
• Steak & Cheese : Chunky steak in a rich hearty gravy with fresh herbs and spices, wrapped in a low-fat flaky pastry.
• Vegetarian : Garden vegetables prepared in a smooth creamy sauce and wrapped in a true light vegetable pastry.

Rolls & Savories: Sausage rolls, beef rolls, garlic and cheese rolls and small savories all wrapped in a low-fat flaky pastry.

Desserts & Fruit Pies: Low-fat lattice-top dessert pies in cherry, apple, apricot, custard, apple and a selection of cheese cakes.

Salads: Caesar Salad, Greek Salad, French Salad, Potato Salad, Fruit Salad.

Cold Beverages: Coke, Sprite, 7-Up, Carrot, Apple and Orange Juice, spring water, energy drinks.

Market Analysis Summary how to do a market analysis for your business plan.">

The market we will engage in first is the downtown Yubetchatown district. Yubetchatown is centrally located in the Bigriver Valley, home to approximately 3.5 million people. It is an integral part of greater Megalopolis.

Yubetchatown is the seventh largest city in the state with a population of 84,560 and a geographic area of 29 square miles. With a growth rate of 8.5% Yubetchatown’s population is projected to grow well over 100,000 by 2008. It is anticipated that Yubetchatown will become the largest city in south Bigriver Valley.

Yubetchatown’s trade area consists of approximately 160,000 residents and is home to a diverse economic base including corporate offices, retail, industrial and manufacturing companies and one of the largest warehouse and distribution centers in North America.

The median household income in the Yubetchatown area is around $91,000 and the median age is 34 years old. Of the south Bigriver Valley population 13% are under 14, 14.5% are 15-24, 21.5 % are 25-34, 36% are 35-59 and 15% are over 60 years of age.

Demographically the UPer Crust Pie customer will come from all age and income levels of the market. Within this population we will focus on three separate groups with different needs: 15-24 year olds (including students), young adults and business people (25-34) and families with children under 14.

4.1 Market Segmentation

UPer Crust Pies intends to market to a wide customer base. However, we have defined the following groups as targeted segments that contribute to our growth projections:

• Families with Children

The largest target market is young adults and businesspeople. Our next largest market and the one with the greatest growth potential is families with children followed by the 15-24 year-old segment.

4.2 Target Market Segment Strategy

15-24 year olds go out for fast food more than any other age group. They have disposable incomes which they tend to spend on immediate gratification items, especially food products they perceive to be unique, cosmopolitan or have an individuality value. Because these individuals are the most open to trying new foods they are vitally important in building an effective word-of-mouth marketing strategy.

Young adults and businesspeople have the potential of providing large volume sales to the company during the peak hours of 11 a.m. to 2 p.m. The lunch business is driven by individuals. Many go out to lunch to get out of the office setting or have business meetings at lunch either in or out of the office. We will endeavor to accommodate surrounding businesses placing phone-in orders for business meetings. Satisfaction of this group will provide a vital long-term revenue stream.

Families with children are a growing population, both numerically and in their choice for convenient foods. Two-income families have less time to prepare meals so they are an easy group to market to because their lifestyle is very specific. We will aggressively target single and working mothers who tend to turn to fast and convenient food choices to accommodate family demands. By targeting this group, we not only generate a large volume of immediate business, but also create long-term customers in their children.

Our downtown location and increasing customer base will probably draw in customers outside of our targeted groups to include visitors and downtown shoppers. We believe these customers will be glad to pay a reasonable price for our products in exchange for high quality, great taste and the uniqueness they receive.

4.3 Service Business Analysis

The United States Fast Food Industry

The U.S. has 277,208 fast-food outlets from coast to coast, that’s one for every 1,000 people. According to the U.S. department of Agriculture, consumption of food away from home accounted for 47% of total food expenditures in 2001, up from 45% in 1990 and 26% in 1960. The National Restaurant Association estimates that by 2010, total sales in the fast food industry will exceed $577 billion. At that time, consumers will spend 53% of every food dollar on meals, snacks and beverages away from home.

The strong demand for takeout food, prepared and packaged for busy customers to eat at home, should continue to grow solidly over the next few years, especially with a significant decline in the cost difference between dining out and cooking at home. The NPD Group, Inc.’s 2003 Consumer Spending Survey indicated the recent drop in the economy has encouraged more people to eat ‘on-the-go’ fast foods. Food on the run has now become the food of choice from executives to blue collar workers. According to Technomic Inc., a Chicago based research firm, take out sales accounted for 67% of total sales at the top 25 limited service chains.

The NPD 2003 Consumer Spending Survey also found that 18 to 34 year olds are turning towards new dining venues that are more likely to serve specialty foods like, sandwiches, Mexican wraps and home meal replacements instead of fried foods. NPD found that consumers frequenting these types of outlets are interested in higher quality food preparation and taste, better physical eating conditions and superior customer service, and are willing to pay a higher price.

Increases in income, especially when coupled with exposure to new and different foods, will stimulate Americans’ continuing quest for increased variety in their diets. Technomic Inc. suggests the most successful food companies in 2020 are likely to be those that tap most effectively into Americans’ appreciation for diversity in their lives, especially the insatiable desire for new and different food choices.

The United States Pie Industry

The U.S. Retailer’s Bakery Association stated in 2001 that bakeries will become the new springboard for successful retail meal programs. The Association believes there are unlimited opportunities for fresh pizza, quiche, pot pies, vegetable pies, soup, pasta and sandwiches.

According to the Bakery Production & Marketing Red Book, total U.S. fresh pie sales for 2003 were $204,567,600 compared to fresh pie sales in 2000 which totaled $182,602,096. Total U.S. frozen pie sales were $339,121,696 in 2003, a substantial increase when compared to 2000 sales of $141,488,000.

An estimated 70% of total pie sales in the U.S., including both frozen and fresh pies, are sweet pies. Although statistics complied by the American Institute of Baking stated that frozen pot pies contributed $68,705,000 to the total figure of $141,488,000 frozen pie sales in 2000.

An increase in consumer demand for the convenience of pot pies corresponds with U.S. consumer’s passion for meat and poultry. In 2002 total meat consumption (red meat, poultry and fish) reached 195 pounds per person, 57 pounds more than the average annual consumption in the 1950s. Each American consumed an average of 7 pounds more red meat than in the 1950s, 46 pounds more poultry and 4 pounds more fish and shellfish.

The Upper Peninsula Pie Industry

The pie is considered the national food of Michigan’s Upper Peninsula and the pie making business is a serious endeavor. Pie sales contributed substantially to the UP’s economy according to a statistics report in 2002.

UP brand Chequamegon is the present market leader in fresh pies with a 54.7% market share, well ahead of their closest competitor on 15% share. Chequamegon offers fresh single and multi-pack pies in as well as a range of sausage rolls and savories. Chequamegon also produces frozen family pies, single pies, frozen single sausage rolls and unbaked sausage rolls.

According to Rosemary Ontonagon, marketing manager for Chequamegon, frozen family pies and multi-pack pies are being used as convenient value-for-money family meal solutions. Single pies are purchased with snacking in mind, being a handy product for households to have on hand for hungry family members. Sausage rolls and savories are being used for more social occasions.

4.3.1 Competition and Buying Patterns

Within the restaurant and fast food industry there are several different segments:

• Fast food: McDonald’s, Burger King
• Pizza: delivery and dine in
• Buffets: all you can eat
• Lounges: combining food and alcohol
• Fine dining: typically restaurants at the highest price point
• Fast-casual: combination of fast service and sit down dining

Local Competitors

The Tintagel Pasty Company

The Tintagel Pasty Company has been operating since 1998. The company recently opened its second store, a small retail outlet on Bass Street in the heart of downtown which is supplied by their original store. The company is owned and operated by Anne Thracite, a Cornish woman with no previous baking or relevant industry experience.

Limited planning and organization have affected the company and there are no procedures or sufficient systems in place to deal with rapid expansion or substantial increases in production. The company is presently struggling to fulfill the demands of having a second retail outlet, regularly running out of product or unable to fulfill customer requests during peak times of the year. The quality of the company’s products can vary from week to week. Product is sometimes overcooked or very dry and equipment is not reliable. Product is sometimes baked twice and then sold frozen to customers in order to fulfill demands.

Business hours at the home store are 9:00 am to 5:30 pm Tuesday to Saturday and at Bass Street 10:00 am to 6:00 pm Monday to Sunday. Although the atmosphere is relaxed and inviting at both stores, a lack of seating has affected customer choice at the Bass Street location. Punch cards (buy nine get one free) have been adopted in the last two years and have aided in sales and repeat business. Customers include a variety of curious first timers and local business people. There is a strong expatriate base and loyal customer following at both stores. Of the customers that have entered both stores, one in 20 has enquired as to whether the company offers franchise opportunities.

The company’s products include six varieties of beef pie, three varieties of Chicken pie and one vegetable pie. Pies come in Lunch size (5 inch, $3.25 to $3.75), Family size (9 inch, $10.75) and Party size (2 inch, $10.00 per dozen). There are also spinach and sausage rolls ($2.50 each) and rotational weekly specials that include, Thai Curry Chicken, Indian Butter Chicken, plain Chicken, Ham and Brie, and Beef Stroganoff. Of the customers that have entered both stores, one in five has asked for sweet pies and desserts.

All product ingredients are presently bought by the owner and purchased at locally. Beverages are out-sourced and delivered weekly by Fizzy Beverage also locally based. Cornish dry foods sold through the store are imported by the owner through her brother in Falmouth, Cornwall, U.K.

The estimated gross profit for the company after the cost of goods in 2000 was $70,185, in 2001 $69,531, 2002 $82,029, in 2003 $100,729 and in 2004 around $132,353. Shipping of frozen product accounts for around 30% of the gross profit for each year. These figures show a healthy growth rate of over 20% in the last 3 years of business. Based on income and expenses over the last five years, wages have averaged between 25-30%, cost of goods around 20% and rent around 20%.

These figures do not take into account the gross profit of the new Bass Street store which started operations in late October 2004. Gross profit after three months of business at this store was $22,730. Based on the present growth rate and an influx of tourists during the summer months the annual gross profit of the Pike Street store alone is estimated to be between $90,000 and $100,000 gross.

The Quern Flour Bakery (Tidalborestad)

The Quern Flour Bakery is based in Tidalborestad, on the East Coast and has been operating since December 2003. Maltese owner and operator Siggiewi Gozo is a former corporate recruiter with an Masters Degree in Psychology who originally came to Tidalborestad for a job with a national sportswear company. He has no previous baking or relevant industry experience.

A one man shoe-string operation, Siggiewi works 15 hour days to make between 700 and 900 pies per week. In early 2004 Gozo was making and selling about 400 pies per month. In January of 2005 he sold 4,000 in bars and Irish pubs alone. Business is now good enough for him to take on extra staff and to scout a bigger location for the bakery. Currently he operates out of a rented nightclub kitchen after hours.

Quern Flour produces seven varieties for the Tidalborestad market, including steak and mushroom, beef and cheese and a shepherd’s pie. He also makes a breakfast egg and bacon pie and a sausage roll. He sells his pies to several midtown pubs, caters events around town and delivers by the dozen directly to customers’ homes by bicycle or subway. Quern Flour Bakery now offers overnight shipping via FedEx anywhere in the country.

The majority of his clientele hail from British Mediterranean areas. There are around 2,300 Maltese and Gibraltarian customers in Tidalborestad that make up the company’s customer base. Quern Flour supplies around six restaurants and pubs with frozen and hot pies within the Tidalborestad area. Gozo also caters for holiday parties and his pies were served at  some consulates during morning tea in 2004.

All the ingredients considered carefully. The flagship ‘chunky steak’ pie is made from sirloin steak and all cuts of meat are inspected to make sure there is no gristle. To develop the perfect pie crust, Quern Flour Bakery sources special margarine directly from Malta.

Quern Flour Bakery pies retail for up to $5.00, and last year the company turned over $90,000 gross. Based on the current market Siggiewi Gozo expects the company to quadruple turnovers by 2005.

Buying Patterns

The most difficult function in predicting customer buying patterns is following the fine line of baking too much product or not having enough product left to serve customers late in the day. Despite implementing sophisticated POS systems that track hourly sales figures, there is no predictable pattern of daily activity. One Tuesday could be a sellout and the next Tuesday there could be pie warmers left full of product.

Despite customer unpredictability, buying patterns typically revolve around several different factors:

• Quality . The menu items must meet minimum levels of quality for people to be willing to spend money on the food, particularly when there are so many different options available.
• Location . Proximity to home or work is very important; so is convenient parking for the end-of-workday traffic stopping to pick up hot food to go or frozen meal solutions.
• Price . Low price or lowest price is not essential. Many customers associate low price with lower quality.
• Convenience . People tend to eat out because it’s quicker than preparing a meal themselves.
• Uniqueness . As consumers seek variety and new experiences, the challenge is to stand out from competitors, not only as an alternative fast food option, but as one that offers consistently high-quality food and a distinctive atmosphere.

The proposed business location for the first UPer Crust store will be in downtown Yubetchatown. Five possible sites are being considered in three areas: the new Yubetchatown Station presently under construction, central downtown Yubetchatown, and the area of Chambers Street and 18th Avenue.

Each will need approximately 500-700 square feet. This area will include freezer space for on-site storage of frozen product. The operating space will consist of an oven, counter and serving area, pie warmers and ambient display cases, cold beverage display, an eating area and a restroom.

The stores will be located on high traffic commuter routes and close to shopping facilities in order to catch customers going to or from work, while they are out for lunch, or on a shopping expedition. The business will operate from Monday through Sunday. Hours of operation will depend entirely on the area and final location of each store.

5.1 Facilities and Equipment

Pie warmers are custom designed and manufactured display cases. Chilled and ambient display cases that house salads, desserts and cold beverages, uniform in design, will also be purchased. Commercial ovens, cash registers and point of sale (POS) accounting systems will be necessary capital asset acquisitions.

5.2 Suppliers and Alliances

UPer Crust Pies is in negotiations with two Michigan Upper Peninsula pie manufacturers to supply frozen pies, rolls and a small selection of dessert pies. It will establish a relationship with a reputable shipping company and a freight agent to aid in the smooth transition of product from the UP to our distribution center.

The company is also currently seeking reputable organizations to supply its stores with fresh salads and desserts on a daily basis, and will also establish contracts with a beverage company to provide popular product brands. Credit and delivery policies will be established; to avoid fluctuating costs the company will endeavor to build a fixed product rate into the contracts.

UPer Crust Pies wishes to establish long-term loyal relationships with its suppliers. Factors such as history, reliability, reputation, delivery system, service, product guarantees and liability issues will be crucial in the final decision. Due to the company’s expansion plans in years two and three, it is important that our suppliers have regional and possibly national coverage.

5.3 Inventory

Our imported products will be stored locally with a company that specializes in cold storage. Lead time for ordering, production, shipping and receiving is expected to be two months, although this will depend on sales volumes and product demand during the first year of business. This lead time will be reviewed constantly and altered in accordance with company expansion and seasonal demands.

Frozen and chilled pastries will be distributed to stores on a weekly basis, dependant on turnover, and will be kept frozen on site. Perishables such as salads and some desserts will be delivered fresh directly to our stores on a daily or two- to three-day schedule. Cold beverages will also be delivered directly to stores according to demand. A small back-up supply of products will also be kept on site.

5.4 Legal Environment

A submission of application for a food license to the State Department of Health will include prepared plans and specifications for review and approval before the construction or remodeling of the initial establishment. The application fee is $300.00.

The State Department of Health will conduct one or more pre-operational inspections to verify that the establishment is constructed and equipped in accordance with the approved plans and in compliance with the Food Code.

The State Department of Health  also requires that each employee possess a Food Handlers Permit. This permit is $10.00 and is obtained after a simple exam.

The company will adhere to the State Department of Health and U.S. Food and Drug Administration Food Code standards. An appropriate insurance policy will also be taken out in accordance with State Department of Health regulations.

5.5 Policies and Procedures

Establishing company policies and procedures will be important the company’s growth and employee development. The following policies and procedures will be adopted:

• Development of an employee policy handbook
• Development of a company procedures and systems handbook
• Clearly defined employee job descriptions, training, reviews and monthly meetings
• An open-door policy for employee suggestions and concerns

The company’s credit policy will be to accept only cash, Visa or MasterCard credit cards.

Strategy and Implementation Summary

UPer Crust Pies will penetrate the commuter and captive consumer markets by setting up stores in highly visible and accessible locations. With the proliferation of coffee and fast-food chains across America, customers expect product consistency. Although our unique products will initially captivate a curious market and compete on a consistency level, it will be our fast and cheerful customer service that will differentiate us from competitors and keep our customers returning.

UPer Crust Pies has identified its market as busy, mobile people whose time is already at a premium. This market desires exciting, new-tasting products with familiar ingredients for lunch time or while commuting to or from work or school.

Strategic Assumptions:

• Every resident in the greater Yubetchatown area is a potential customer.
• Each location gives us an opportunity to increase customer awareness.
• Marketing to our target segments will expose us to additional new customers.

6.1 Competitive Edge

UPer Crust Pies’ unique products and focus on the customers experience will give it a significant market edge and differentiate the company from its competitors.

The company has several distinct advantages over its two leading competitors; its authentic products, modern baking and presentation equipment, and the latest operating systems and technology.

A fast and unique food alternative: We offer our customers a completely new experience through our pies, pastries, salads and desserts. The look, feel and taste of our products when compared to the competition will initially establish a sense of curiosity, followed by a value for money reputation and eventually a loyal following of pie lovers and connoisseurs.

Products are made from the finest quality ingredients and are low in fat and free of genetically modified foods. Many products, such as the authentic Upper Peninsula pies, will not be available anywhere else.

Our products will be served fast and ready to consume and will be an alternative to the usual fast-food options available in today’s market.

The importance of the experience: With so many fast food restaurants and prepared foods being offered at grocery markets, the customer experience becomes extremely important as an effective way of distinguishing offerings. It is this experience that remains in the customer’s mind well after they have consumed their food. This memory is what is communicated to their friends and colleagues.

We realize that our business is a lot more than just pies. It’s our pies, our people and the experience the customers have in our stores. The store environment will play a major role in a positive customer experience. The cleanliness, smoke-free environment, color scheme and nostalgic Upper Peninsula/Great Lakes images will create a completely new experience.

6.2 Marketing Strategy

The focus of our marketing strategy will be to attract new customers, educate those customers and create a loyal base. Our goal is to be known as a unique food experience with superior customer service.

The following marketing strategies will be employed in the first year of business:

Signage: Highly visible, eye catching and recognizable signs and logos at each store.

Print media advertising: Weekly and monthly food and dining out guides will be used for print advertising.

Flyers:  Distributed to local businesses to create customer awareness, accompanied with buy-one get one-free coupons during our Grand Opening.

Entertainment book coupons: Create initial customer awareness and economic incentive to try our products. The effectiveness of these books diminishes after approximately eight months and UPer Crust Pies will turn to more cost effective marketing.

Word of mouth: Unsurpassed customer service and our unique products will help develop strong word-of-mouth advertising and in turn help extend the company brand.

Alliances: Although the company is primarily in the fast-food industry, it’s unique products and cultural origins could be used as a tourism vehicle to promote the Upper Peninsula through a strategic alliance with Michigan Tourism.

6.3 Sales Strategy

We intend to succeed by giving our customers a combination of delicious food in an appealing environment with outstanding customer service. Once a customer enters our store, it is our job to make sure their experience with us is enjoyable. To establish a loyal customer base, it is vitally important we develop repeat business.

Our pies will be cooked throughout the day, ensuring they can be served with confidence while guaranteeing our customers supreme freshness and taste. We will also offer fresh baked samples free of charge to those who enter our store for the first time.

We need to offer fast service at peak times. To speed up customer service, at least two employees will be servicing customers. One employee will be preparing the customer’s order, the other one will be taking care of the sales transaction. All sales data logged on our computerized POS system will be analyzed for marketing purposes.

We will offer punch cards, meal deals and weekly menu specials and keep accurate track of what types of pies and associated foods sell well through a customer feedback program. With this information we will be able to streamline our food line to match local tastes and encourage more people to eat at the pie shop.

We need to sell the company as well as the product. All employees will go through a comprehensive training process on how to offer customers the finest experience. Employees will be empowered to resolve issues and are encouraged to seek assistance from managers for any conflicts they are unable to resolve.

Part of our mission is to educate our customers about pies. However, this must be done in a respectful fashion. Our knowledge is a resource, and must never be used to make a customer feel uncomfortable or ignorant.

In the first year of business we will implement a Point-of-Sale (POS) computerized cash register system that will make tracking and managing receipts and charitable contributions more robust. We will seek a professional who has experience in how to tie in POS systems to the Internet and inventory controls. This individual’s knowledge will also help establish technology guidelines for the company.

Our sales strategy requires consistently high quality food and fast service in a relaxed atmosphere. We can accomplish this by:

• Hiring employees who appreciate our unique products.
• Continually assessing the quality of all aspects of the business and immediately addressing any issues.
• Interacting with our customers personally, so they know that their feedback goes directly to the owners.
• Evaluating food choices and keeping favorites on the menu as we rotate weekly and seasonal specials.

6.3.1 Sales Forecast

Our sales forecast shows modest estimates for the first year of operations beginning in July 2005. Cost control is a critical focus for UPer Crust Pies. Because we are importing our product from Michigan, we will negotiate a flat purchase price for the first three years of business to compensate for fluctuating economic conditions. We have projected a 60% gross mark up over the first three years of business. Keeping costs low while increasing sales will be vital to the company’s profitability in subsequent years.

UPer Crust Pies envisions the first three months of sales to be fairly slow due to limited product awareness, the competitive nature of the market and existing customer loyalty. We have therefore forecasted a 5% growth rate over the first year. In the second year, UPer Crust Pies will add two more stores and in the third year, an additional two stores. The addition of these stores will nearly triple the gross revenue in the second year and increase half again as much in the third year. Compared to industry standards we have taken a very conservative 10% growth rate over the first three years of operations.

Not projected in this sales forecast is the possibility of additional revenue generated from shipping via an e-commerce facility to be added to our website in year two. Based on current market research, shipping could be a significant profit center. We would sell frozen products that could be shipped overnight via DHL or FedEx to customers throughout the U.S. Shipping would also become an integral part of the company’s marketing plan to help develop brand recognition and build product awareness.

We understand product sales will also vary according to the season. Dessert and salad sales in the summer months are expected to be slightly higher since more people will be having barbecues and picnics requiring ad-on products. Pie and pastry sales should be higher in winter because of food oriented holidays and pies tend to be viewed as a comfort food. It is anticipated that sales of sodas during the summer months should be substantially higher.

Please note that the sales forecast for the first year reflects store number one at a 5% growth rate. In the second year, the forecast reflects the combined sales of three stores at a 10% growth rate, and in the third year,  the combined sales of five stores at a 10% growth rate.

Web Plan Summary

In the first year of operation UPer Crust Pies will establish a basic Internet presence. The website will be a virtual business card and portfolio for the company with a simple yet contemporary design to keep up with the latest trends in user interface. The site will have general information about the company, its products, prices, store locations, hours of operation and contact information.

In year two, the company will launch an e-commerce facility for customer ordering and shipping of frozen products throughout the U.S.

7.1 Website Marketing Strategy

Marketing efforts will start with our existing brick-and-mortar store customer base, informing them of our Internet presence and encouraging their word-of-mouth recommendations. Further awareness will be heightened by utilizing search engine submissions, URL links and e-mail marketing.

The company website and email address will be referenced on all printed material and correspondence including menus, business cards and advertising media.

The launching of our e-commerce facility for shipping in year two will also be marketed in our stores through word of mouth and on all printed media. Expansion into outside sales will help us to create greater community awareness.

7.2 Development Requirements

Development Costs

• Site design: $1000 – $2,000.
• Website name registration for www.UPerCrustPies.com is $149.00 for 10 years.
• Site implementation: UPer Crust Pies will utilize the programming services of a friend with 12 years of experience in software development, including custom programming, data management and Web development.

Ongoing Costs

• Site hosting: $19.95 per month. Includes 250 MB Disk Space, 10 GB Data transfer and 20 POP e-mailboxes. (Year 1)
• Fully integrated e-commerce site hosting: $99.95 per month. Includes 5,000 MB Disk Space, 200 GB Data transfer and 200 POP e-mailboxes, storefront and shopping cart, secure online credit card processing and payment options. (Year 2)
• Search engine submission: $44.95 per month. Guaranteed placement in Google and Yahoo! (Year 2)
• Site design changes: Free of charge; however, material for changes such as photography, new logos or designs may incur a fee but will be considered part of  the marketing budget.

Management Summary management summary will include information about who's on your team and why they're the right people for the job, as well as your future hiring plans.">

The strength of our management team positions us for success. We have assembled a team that embraces different disciplines with expertise in all areas of the business. Overhead for management will be kept to a minimum and initially all managers will be hands-on workers. There is no intention of having a top-heavy organization that drains profits and complicates decisions.

UPer Crust Pies’ management style will encourage all employees to learn as much as possible about all aspects of the business and be involved in decision making where appropriate. The company respects its community of co-workers, and will treat all workers well. It is important to us that they enjoy their jobs, feel part of the company and are well rewarded for their work.

In addition to the day-to-day operations, the management team, as principals within the company, will oversee product development, purchasing, positioning, pricing, inventory control and approval of all financial obligations of the company. They will plan, develop, and establish customer service policies and objectives, write employee job descriptions and draft an employee manual for all employee-related policies. They will:

• Manage working capital, including receivables, inventory and cash.
• Perform financial forecasting, budgeting, cash flow analysis and external financing requirements.
• Prepare financial analyses for guiding management, including  income and expense reports.
• Prepare budgets and financial forecasts and arrange for audits of the company’s accounts.

8.1 Management Team

Lina Mackinac-Gogebic, CEO – Accounting, Marketing, Legal, Human Resources

Confidential and proprietary information removed from this sample plan.

Olie Mackinac-Gogebic, COO – Operations, Marketing, Financial, Business Development

Misty Glade – Vendor Relationships, Sales, Recruitment, Training

Full Time Employee – Operations, Inventory, Store Development

Advisory Board

8.2 Personnel Plan

UPer Crust Pies will be slow to hire people in the first year of operation, but very loyal to those who are hired. Initially all employees will be part time as the majority of work will be done by the owner. As the company grows, we intend to hire employees with relevant skills and reward them accordingly. From that point, we intend to increase the responsibilities of each employee as opposed to hiring more people.

Retail and restaurant businesses live or die on customer service, yet their employees have among the lowest pay and worst benefits of any industry. We know we have great products, but it’s the way those products are delivered that will determine our success. We realize that our employees are our biggest asset and that the image of our company is built by the people who work for us.

Compensation for employees will include direct monetary payments and as the business progresses, performance bonuses will be paid to full-time employees. Because this is a small business, employees will be paid a comfortable wage that is fair to both the employees and the business.

Our opening employment goal is one full-time and one part-time employee with an additional two full-time and three part-time employees by the end of the second year. All employees with be trained in food handling and store procedures and will be required to hold a food handlers permit.

Our employee policies will include:

• Weekly management meetings
• Monthly employee meetings
• On-going training
• Performance reviews every six months
• Performance incentives
• Encouragement of creativity

Financial Plan investor-ready personnel plan .">

A bank relationship will be established as soon as possible. Sales could very well increase at a much sharper rate than assumed in these conservative projections. Sharper sales will result in a greater need for funds in support of inventory and store growth and a line of credit will need to be established.

We will set a budget for marketing and advertising and will continue to reinvest residual profits into company expansion and personnel.

Sales growth will be aggressive during the first 18 months as we sharpen our product line and inventory to better meet our customer’s requirements. Although we anticipate substantial growth in years two and three we are forecasting a very conservative 10% growth rate.

• Salaries and rent are two major expenses. Depreciation will also increase as the company develops.
• The owners will not take any profits out of the business and will be paid as an employees.
• Payoff of private investment is expected within four to five years.

9.1 Start-up Funding

Total startup funding amounts are shown in the table below. This includes initial start-up expenses, liquid cash for operating expenses, unforseen expenses, to help cover wages, and also includes start-up inventory. This inventory will include the purchase and storage costs of frozen products, purchasing of cold beverages and daily delivery of fresh salads and various other desserts.

The purchase of long-term assets that will include an oven, two pie warmers, an ambient display case, freezers and refrigerators, a dishwasher and microwave, a three-compartment sink, decor and furnishings, utensils, a cash register and Point-Of-Sale software and accessories.

A long-term loan has been secured for the purchase of the long-term assets.

A first round of private investment from outside investors and family members will begin in April 2005. A second round will commence at the end of April 2006 for the purchase of further inventory and long-term assets to service the next two stores.

Profits will be reinvested and the owners will be employees collecting a very modest wage. This will ensure that any operating debts incurred are paid for within the shortest possible time period.

9.2 Important Assumptions

Payroll burden is calculated at an estimated 12.65% made up of 7.65% for social security and medicare, 2% for unemployment, and 3% for worker’s compensation.

The tax rate has been left at 0% in the first year plan due to accumulated losses carried forward and that as an LLC the the owners will be taxed personally.

Our long-term interest rate is 6%.

Our State Sales tax is 4%. This does not affect our total profitability, but monthly payments to the State does impact our cash flow and cash balance.

Our financial plan depends on important assumptions. Our key underlying assumptions are:

• A slow-growth economy without major recession.
• Access to sufficient capital to sustain the company’s projected growth plan.

9.3 Break-even Analysis

Our break-even analysis is summarized by the following chart and table.

9.4 Projected Profit and Loss

The following table and charts indicate projected profit and loss.

9.5 Projected Cash Flow

Our projected cash flow is outlined in the following chart and table.

9.6 Projected Balance Sheet

The following table explains the projected balance sheet.

9.7 Business Ratios

Projected business ratios are provided in the table below. The final column, Industry Profile, shows ratios for the Fast-Food Restaurant, Independent industry, as determined by the Standard Industry Classification (SIC) Index code 7999.

Risk Management

New restaurants and fast-food outlets often make one of two mistakes: they are either unprepared or under prepared for opening. Initial poor service or product quality discourages customers from returning. Many first businesses spend all of their efforts at opening and are unable to maintain the quality customers expect on return visits, decreasing word-of-mouth advertising and leading to poor revenues.

UPer Crust Pies will be as prepared as it can possibly be with back–up equipment, alternative suppliers and at least three month’s inventory of frozen product.

Initial costs will be planned accordingly and kept to a minimum. The company recognizes the importance of its image, first-time impressions and customer service and it will not sacrifice this in order to satisfy the bottom line.

It is anticipated that marketing costs will be significantly higher in the first three months of business. Marketing activities will be closely monitored and constantly analyzed to decide what marketing activities are successful and what are not. A marketing budget will be set for the first store and for each subsequent store.

UPer Crust Pies will establish a loyal and long-term relationship with our suppliers and always pay on time. We wish to establish fixed-product rates with our suppliers as a buffer to avoid fluctuating economic conditions that may affect our purchasing capabilities.

Changes in importation policies and health regulations will always affect UPer Crust Pies. We need to establish a strong working relationship with the relevant authorities to ensure all procedures are followed correctly and ensure that we have a steady supply of product.

Because our products are unknown to the general consumer, marketing activities are vitally important. We plan on implementing several marketing strategies as outlined in the marketing section of this business plan. To establish product and brand awareness, we will give-away small samples to encourage first timers to try our products. Although we have quality products, building a loyal customer base will take time. We realize that training and empowerment of our employees will be reflected in their customer service and that word-of-mouth advertising will be paramount to our success.

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Create a Great Visual Business Plan

Writing a business plan isn't something to be taken lightly. A survey by the University of Oregon's Department of Economics found that companies that complete a business plan are twice as likely to grow and secure investment capital as those that don't.

This may seem like an insurmountable task. But it doesn't need to be.

We've boiled the important elements down to a few diagrams. Complete these and you'll have a great, visual business plan that will take a fraction of the time to complete than a traditional narrative one. It will also be appreciated by readers, who can see and understand the key elements of your plan quickly, without wasting a lot of time.

Step 1. Mission: Explain Why the Business Exists

Too many businesses fail because the entrepreneur(s) weren't in business for the right reason. All too often, the drive is a desire to get rich or leave a job one doesn't like. Unfortunately, emotional motives usually doom a new enterprise.

Focus on the "why" of your business—its purpose for existing. Richard Branson believes that a sense of frustration is the key to business success. His first venture, Virgin Records, was launched because he didn't like how a few high-priced London record outlets controlled the market. His company's mission was to ease this frustration by making it easier and cheaper for people to buy music.

A good way to summarize your mission is with a process list diagram. It has five key questions about what your business is, who your customers are, and why it will succeed within its market space. Each answer needs to be brief—no more than a couple of sentences. Keep your thinking very "high level" in this exercise.

Step 2. Objectives: Create Milestones for Important Events

What are your primary objectives over a specific time period? How long a time period? For most businesses, this timeframe should be long enough to get the business to at least its first major milestone—profitability, an equity event, etc. It should not be less than a year nor should it be longer than five years.

A timeline diagram is a good way to present this.

Step 3. Team: Show Them You're the Right People for the Job

Lenders, angel investors, and venture capital firms want to know who comprises the team. Do your backgrounds, qualifications, and experiences fit the mission?

An organizational chart should be included, along with a brief bio of each key individual. Make it clear why each person is the right "fit" for the mission.

Step 4. Marketing: Show How Your Price, Product, and Promotions will Differ

Getting your product into your customers' hands requires a clear and concise strategy. In today's world, having a well-thought-out marketing plan is essential.

A good starting place for this is a 4Ps diagram. It looks at your product, who the potential buyers are, how to reach them, and at what price point they will buy.

Step 5. Tactics: Show Off Your Process

Here's where you want to show you can deliver on your promises. This means getting the product from concept to customers' hands within a timeframe that meets or exceeds their expectations.

There are a number of ways to present this. For most businesses, a basic flowchart, such as a workflow diagram or business process map will work well.

For manufacturing companies, a value stream map is an excellent tool. It not only explains a potentially complicated process succinctly, it also helps your management and production teams to evaluate and streamline operational efficiency.

Step 6. Finances: Presenting the Right Numbers the Right Way is Crucial

What numbers should you present in your business plan? There are many possible answers to this question. It really depends on the purpose of your business plan and who will be receiving it.

For example, say you are writing a business plan for the internal purposes of management. You may not need to document historical data or validate projections to the degree you should, say, for a bank loan.

If you're seeking investment capital, then you need to make sure your forecasts are extremely well thought out, and they show the investor(s) a clear plan for how and when they will be compensated.

Regardless of your intended audience, there are a few financial documents you should include in your business plan.

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A complete guide to pie charts

Posted by: mike yi.

Despite often being maligned, the pie chart remains a very commonly-seen chart type. In this article, you will learn how to best use this frequently-misused chart type.

What is a pie chart?

A pie chart shows how a total amount is divided between levels of a categorical variable as a circle divided into radial slices. Each categorical value corresponds with a single slice of the circle, and the size of each slice (both in area and arc length) indicates what proportion of the whole each category level takes.

The pie chart above depicts the distribution of votes for a fictional election for a small city. We can see that Reyes, represented by the first blue slice, has just less than half of the votes. Chu (yellow) is in second, with about a third of the votes, while Williams (purple) is last, with about a fifth of the votes. The annotations in the upper right give us a more precise judgment of the proportions, but the pie chart tells the overarching story of where the votes fell.

When you should use a pie chart

Pie charts have a fairly narrow use-case that is encapsulated particularly well by its definition. In order to use a pie chart, you must have some kind of whole amount that is divided into a number of distinct parts. Your primary objective in a pie chart should be to compare each group’s contribution to the whole, as opposed to comparing groups to each other. If the above points are not satisfied, the pie chart is not appropriate, and a different plot type should be used instead.

The values that comprise a whole and the categories that divide the whole generally come in two major varieties. First of all, is when the ‘whole’ represents a total count. Examples of this include votes in an election divided by candidate, or number of transactions divided by user type (e.g. guest, new user, existing user).

A second type of ‘whole’ is when the total is a sum over an actual data variable. For example, we might be interested not in the number of transactions, but the monetary total from all transactions. Dividing this total by an attribute like user type, age bracket, or location might provide insights as to where the business is most successful.

Example of data structure

Data for a pie chart can be summarized in a table like the above, where the first column indicates a category, and the second the proportion, frequency, or amount of that category. Usually, the total does not need to be specified separately unless it is to be listed somewhere else on a generated figure. Alternatively, some tools can just work with the unaggregated data as in the below table, essentially performing the aggregation into the table above at time of pie chart creation.

Best practices for using a pie chart

Include annotations.

It is actually very difficult to discern exact proportions from pie charts, outside of small fractions like 1/2 (50%), 1/3 (33%), and 1/4 (25%). Furthermore, if the slice values are meant to depict amounts rather than proportions, pie charts typically lack the tick marks to allow for estimation of values directly from slice sizes. It is for these reasons that annotations are a standard inclusion for pie charts.

Consider the order of slices

A good order for slices can make it much easier for a reader to understand what the plot is saying. A typical ordering goes from the largest slice to the smallest slice, very useful when there are categories with very similar values. However, if the category levels have an inherent ordering, then plotting slices in that order is usually better.

As for choosing a start point, it’s a good idea to plot slices from a cardinally-oriented direction. Visualization tools will usually start from the right or from the top. While starting from the right has a mathematical basis regarding conventions on measuring angles, starting from the top feels more intuitive, since it matches how we read from top to bottom, and how we think about progression of time on a clock or watch face.

We do not sort by size here since the labels are meaningful.

Limit the number of pie slices

Pie charts with a large number of slices can be difficult to read. It can be difficult to see the smallest slices, and it can be difficult to choose enough colors to make all of the slices distinct. Recommendations vary, but if you have more than about five categories, you might want to think about using a different chart type. As another option, you might consider lumping small slices into a single ‘other’ slice, colored in a neutral gray.

Avoid distorting effects

Reading a pie chart accurately requires that the slices’ areas, arc lengths, and angles all point to an accurate representation of the data. While avoiding 3-d effects is a good idea for any plot, it is especially important for pie charts. Squashing or stretching the circle or adding unnecessary depth can easily distort how large each slice compares to the whole.

Another distortion can come from the ‘exploded’ pie chart, where slices are pulled out from the center for emphasis. This emphasis comes with a cost, where the gaps can make it more difficult to actually gauge the part-to-whole comparison.

Common misuses

Fitting a pie to incompatible data.

One of the most common mistakes with using a pie chart is to fit it to data that does not represent a parts-to-whole comparison. This confusion occurs most often when the values to be plotted are percentages or proportions, but don’t comprise a complete whole. The example below shows how frequently the people surveyed used each of four applications, but since many people used multiple apps, the proportions sum to much more than 100%.

Another tricky case is if the values used for each group are a summary statistic that is not a total. The chart below was built on the average transaction amount for multiple transaction types. However, since it ignores how frequently each transaction type was used, it distorts how much revenue is coming in from each type. While checks have the highest average, they might also be fairly rare in use. In both cases, a bar chart is an appropriate chart type to use.

Using pie charts to compare groups to one another

If you want to make comparisons between groups rather than from each group to the whole, then you are better off with a different chart type. Even when sorting slices by size, it can be difficult to tell how different two slices are, especially when they move away from the start / end point. In the below example, you might assume that the second slice is larger than the third due to order, but the corresponding bar chart actually shows the opposite. The main thing that you can really say from the pie chart is that both slices are approximately the same proportions from the whole.

Comparing values across multiple pie charts

There may be cases where you will want to compare multiple pies to one another: for example, comparing user demographic distribution across multiple years. However, this runs into a similar issue as the previous section, where you want to compare groups to one another. Even worse, it’s a comparison between pies, so you can’t rely on the order of slices as easily for the comparison. Expressing the data using a different plot, like  stacked bar chart , grouped bar chart, or  line chart , is often a better choice when this kind of group-to-group comparison is desired. Like with actual pies, pie charts are best taken one at a time.

Comparison of the pies may imply a shrinking of the older age groups by proportion, but the grouped bar chart demonstrates a growth in the younger groups.

Common pie chart options

Absolute frequency vs. relative frequency.

Pie charts can be labeled in terms of absolute values or by proportions. Labeling slices with absolute amounts and implying the proportions with the slice sizes is conventional, but consider the goals of your visualization carefully in order to decide on the best annotation style to use for your plot. In some cases, including both numbers in the annotations can be worth the additional text.

Doughnut plot

A doughnut plot (aka donut plot) is simply a pie chart with a central circle removed. For the most part, there  aren’t significant differences in readability  between a pie chart and donut chart, so the choice of a doughnut over a standard circle is mostly that of aesthetic. One small boon for the ring shape is that the central area can be used for additional information or to report statistics.

Related plots

The biggest competition for the pie chart comes from the  bar chart . Most of the time, you won’t want to use a pie chart – rather, a bar chart will get across the points more compactly and clearly. Many of the issues with pie charts are  solved through the use of a bar chart . However, bar charts do not immediately sell the part-to-whole comparison, which is pie chart’s major benefit.

Stacked bar chart

On the other hand, the  stacked bar chart  type can prove to be a strong rival to the pie chart in its ability to communicate a part-to-whole comparison. A single stacked bar can be thought of as a pie chart’s slices rolled out into a rectangular form. The rectangular form also makes it easier to compare categorical breakdowns across different groups. However, pie charts still have an advantage in  familiarity and aesthetics , so they’re still worth having in mind for the part-to-whole comparison use case.

Waffle chart

Another alternative to the pie chart is the waffle chart, also known as a square chart or square pie. A waffle chart comprises 100 icons, typically squares laid out in a 10 x 10 grid. Each icon represents 1% of the data, and the icons are colored based on the categorical distribution of the data. While there will need to be some rounding of category amounts to fit the plot structure – never split icons in this plot – it can be a way of making the relative proportions for each category easier to read.

Visualization tools

Most visualization tools will be able to create pie charts, despite their limited use case. Donut charts are somewhat less common, but there aren’t a whole lot of cases where they’re truly needed over pie charts. Despite the fact that pie charts have fallen out of favor for most visualization needs, it is important to recognize that they are a common chart that people generally know how to read. Pie charts are still great at their ideal job: immediately selling a part-to-whole comparison objective.

The pie chart is one of many different chart types that can be used for visualizing data. Learn more from our articles on  essential chart types ,  how to choose a type of data visualization , or by browsing the full collection of  articles in the charts category .

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Free Small-Business Budget Templates

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A business budget template is one of the most important tools you can use to run your small business. However, many small-business owners skip this vital business management step.

The misconceptions surrounding budgeting are plenty. It seems complicated and time-consuming. But with a good business budget template, the process can be much less daunting.

An effective small-business budget template is a living document. Creating a budget and then forgetting about it is wasted effort. You must compare your actual numbers against your budgeted numbers regularly.

Therefore, your budget should be easy to access and adjust on an ongoing basis. But you don’t have to spend a lot of money on business budgeting software , if you don't want to. There are several free small-business budget templates available online.

QuickBooks Online

Why you need a business budget template

A business budget template is an essential tool for business owners who want to take care of their bottom line. Why should you invest in a smart template from the start?

Here's how a business budget template can set you up for success:

Track cash flow, expenses and revenue.

Prepare for regular business slowdowns.

Allocate your budget to the portions of your business that need capital most.

Plan for business investments and purchases.

Project all costs to starting and running your business.

Generally speaking, your business budget template can act as a business health scorecard if you invest in setting one up properly. Here's our list of the best budget templates available so you can do just that.

Capterra’s Free Small-Business Budget Template

The Capterra small-business budget template has been a fan favorite since it was published in 2015. In this one simple Excel workbook, you can create your monthly budget, your annual budget and then compare your actual numbers to your budgeted numbers. It also has a convenient overview sheet, which gives users access to their performance at a glance.

To help you through the process, Capterra has included a detailed Instructions tab, which walks you through how to use the template step by step. Start here to save yourself hours of time and frustration. As a bonus, there are several resources linked on the Instructions tab to help you create the perfect budget for your small business.

PDFConverter.com 15 Best Budgets

Rather than one bloated Excel workbook that tries to do everything, PDFConverter.com has compiled a library of 15 small-business budget templates.

These templates cover a wide range of budgeting needs, from a basic overview of your business income and expenses to marketing budget templates. The startup budget template is ideal for newbie entrepreneurs still in the planning stage of their businesses. And the cash flow template is perfect for identifying and plugging cash flow leaks.

Annual Business Budget in Google Sheets

Do you love all things Google? You can create a comprehensive budget for your small business right from Google Sheets. Simply navigate to your Sheets and then click on Template Gallery . Our friends at Intuit QuickBooks have created an annual business budget you can use for free.

To fully appreciate the power of the template, review the Summary tab after you have entered your budget figures. The tables and graphs on this tab offer a visual representation of your income and expenses, making it easy to see where you stand at a glance.

Microsoft Office Template

This beautiful template from Microsoft Office focuses exclusively on expenses, but it does that job exceptionally well. There are tabs for planned and actual expenses, a tab for automatically calculated variances between the two and an expense analysis tab complete with pie charts.

Your accounting software

While not a free template per se, you likely have a powerful budgeting tool available right inside your business accounting software . Though not as flexible as a separate template, there are many advantages to using the budgeting feature of your accounting software.

The budgeting feature in your accounting software will coincide with your chart of accounts. Depending on the software you use, you can create a budget to actual comparison reports with the click of a button, making analysis a cinch.

Some software programs even let you set multiple budget scenarios and have “cloning” features, which simplify the budgeting process after the first year.

Designing your budget

Now that you’ve chosen your business budget template, it’s time to start designing your budget. This is where many small-business owners procrastinate because people typically see budgeting as restrictive or punishing.

It's time to shift your perspective on budgeting. Most people start with income and tinker with their expense amounts until they arrive at a balanced or surplus budget. This method usually leads to unrealistic projections and ends in frustration.

Instead of a top-down approach, consider “reverse engineering” your budget by following these four simple steps:

Form your income projections and write those down outside of your budget template. Put this paper or spreadsheet away until after you have completed the next step.

Enter your expenses into your budget template. Be very honest in your entries and include everything. Going through several months’ or even a year’s worth of accounting data or bank and credit card statements will ensure you capture all your spending. This is not the step where you want to try to eliminate expenses. Record everything, only excluding expenses you have already eliminated from your monthly or annual spending.

Enter your income from the projections you formed in step 1.

Review your budget. If your budget shows a projected loss, analyze your expenses and identify areas where you can reduce spending.

This approach makes sure you avoid the temptation of forcing your budget to balance. While you do want your budget to balance — or better, to show a cash surplus — having unrealistic income or expense numbers will lead to frustration and resistance during the budgeting process.

Monthly or quarterly, compare your actual income and expense numbers to your budgeted numbers. Regular tracking helps identify financial pitfalls before they become unmanageable.

Frequently asked questions

How do i make a budget template.

You can create a small-business budget template from scratch by using free software like Microsoft Excel or Google Sheets. However, it’s often more efficient to download a template (see our list above). A template with built-in tables and formulas makes plugging in your revenue and expenses and calculating your profit or loss quick and straightforward.

What is included in a small-business budget?

Your small-business budget will include your revenue, expenses and your profit or loss. Each section will be broken into subcategories. For example, under revenue, you might have sales and income from sponsorships. Expenses might be broken down into rent, employee salaries and marketing. After you tally your revenue and expenses, you can then calculate your profit and loss statement.

How much should a small-business budget be?

A budget will vary by your business and industry. For example, you can potentially start a social media consulting business for less than $5,000. But a food truck business may necessitate a budget of at least $50,000. You must tailor your small-business budget to your unique needs.

On a similar note...

30 Examples Of Financial Graphs And Charts You Can Use For Your Business

Table of Contents

1) What Are Financial Graphs?

2) Why You Need Financial Analysis Graphs?

3) The Role Of Financial Data Visualizations

4) Financial Business Graph Examples

5) Best Types Of Financial Graphs

6) Financial Graphs Best Practices

The financial health, flow, and fluidity of your business will ultimately dictate its long-term success, which is why monitoring your money matters carefully, comprehensively, and accurately is absolutely essential.

In our data-driven digital age, 'business intelligent' organizations with the ability to collate, organize, and leverage the insights that are most valuable to their ongoing commercial goals are the ones that are destined to thrive in the long term. Online data visualization takes precedence in business operations, creating more efficient and faster workspaces.

That said, in a time wherein less than two years, around 1.7 megabytes of new information will be generated per second for every single person on the planet, businesses looking to keep their financial affairs fluid need access to KPI dashboards equipped with graphs and charts that are digestible, accurate, and deliver the level of insight required to increase efficiency and stop potential pitfalls before they occur.

In this article, we will present the basic definition of financial graphs, explain why you need them, and answer the most basic of questions: what graphs to include in financial analysis? By presenting data graphically, you will not only make the most out of your monetary information, but simple visuals will do half of the explaining for you. That said, let's get started.

What Are Financial Graphs?

**click to enlarge**

Financial graphs and charts are visual tools that allow companies to monitor various performance metrics in areas such as liquidity, budgets, expenses, cash flow, and others.  By doing so, they can successfully manage risks to ensure healthy finances and steady growth.

To ensure the best possible performance for a company, conducting regular financial analytics and ensuring the highest quality of data management must be the top priorities of companies, no matter the size. If the finance department raises an alarm, everyone must carefully listen because it concerns the most crucial information and can lead to serious damages if ignored. That's why financial charts must be created with the utmost care and attention. Let's see this in more detail.

Why Do You Need Financial Analysis Graphs?

As humans, we respond to and process visual data better than anything else. That said, when it comes to digesting and taking action upon vital financial metrics and insights, well-designed finance graphs and charts offer the best solution. According to Illinois State University, when it comes to visual aids of this kind, three standards apply: graphs and charts should display unambiguous information, meaningful data, and presently said insights in the most efficient way possible.

Fundamentally, you need them because:

• You will be able to track your liquidity, cash flow, budgets, and expenses accurately with ease, visually, and automate processes that were oftentimes done manually and with higher risks of errors.
• By setting the right financial KPIs for your organization, you can set valuable goals that result in growth and success. While there are numerous charts out there, we will explain the invaluable ones for any company.
• You will be able to make sense of all the financial information and metrics as they will be split into actionable categories and presented intuitively and scannable, no matter the metric you need to include and analyze.
• Pen and paper or static data will no longer cut it in today’s fast-paced, competitive commercial landscape. As mentioned, manual work is prone to mistakes you can easily avoid by using self-service analytics software .

“Every second of every day, our senses bring in way too much data than we can possibly process in our brains.” – Peter Diamandis , Chairman/CEO, X-Prize Foundation .

Based on this quote alone, it’s clear that by leveraging the power of robust charts that deliver accurate, reliable, and clear-cut financial insights, busy fiscal departments will be able to make sense of the insights before them, resulting in success and evolution, rather than getting bogged down with droves of meaningless and convoluted data.

You can start by creating a simple income vs. expenses graph, add additional charts relevant to your organization's story and finally create a dashboard that will present all your information on a single screen. Let's see this in more detail.

Your Chance: Want to create interactive financial charts and graphs? Explore our 14 day free trial & benefit from great finance management!

Which Role Does Financial Data Visualization Play?

Financial data visualizations such as interactive dashboards are complete with charts and graphs that assist in the tracking of all of your core KPIs on one navigable platform. For optimizing reports and detailed analysis, you can check our blog article about financial report examples.

These dashboards give time-stretched finance departments the power to remain on top of the economic performance of the business, resulting in more efficient cash management, accurate expense tracking, comprehensive insights on sales, and additional visual insights geared toward reaching valuable financial goals .

A financial dashboard offers all of the metrics and insights needed to ensure the success of your overall performance, cash flow, cash management, and profit and loss, among others. The business dashboard above not only makes extracting key data swift but is developed in a way that makes communicating your findings to important stakeholders within the business far more simple. And in contrast to a traditional Excel chart, these ones serve real-time data that will prove invaluable to the financial future of your company.

Not only will your company have the opportunity to explore, monitor, and access real-time data, but the interactivity levels are an invaluable resource for managing enormous amounts of information, especially in the financial sector where a small mistake can lead to millions of damages. That's why interaction with the finance charts and graphs is of utmost importance: a single KPI can be viewed in numerous useful ways and angles that static presentations could never offer.

Finally, we cannot avoid mentioning collaboration as one of the top roles of modern financial data visualization tools. As we said before, finances are arguably the most important aspect of any business. If something is wrong with them, most likely, the entire company will suffer. By using BI dashboard tools such as datapine, you will be able to share your financial insights live with the rest of the departments in your company and enhance a collaborative, data-driven work methodology that will optimize your business performance as a whole.

Graph use in financial reports is already a business standard in today's environment. When you add up intelligent tools, automation, stunning visuals, and interactivity for your data visualization process, your finance department will significantly increase productivity and decrease costs. Let's see this through our top 30 financial chart templates.

See Our 30 Financial Business Graph Examples

To put the importance of a dashboard-based financial business graph into perspective, here are 30 templates that cover the most critical money-centric aspects of the ambitious modern business.

1. Gross Profit Margin

As a key component of our profit & loss dashboard , this indicator has been developed in the form of a traditional pie-style chart but with a more navigable design. The gross profit chart showcases your overall revenue minus the cost of goods sold, divided by your total sales revenue.

Offering a visual representation of your gross profit as well as clearly defined metrics, this chart will allow you to measure your organization’s production efficiency and ultimately enable you to enjoy a greater level of income from each dollar of your sales.

2. Operating Profit Margin

As another profit and loss-centric financial charting example, this visual is split into an easy-to-digest percentage gauge in addition to a detailed bar chart and will enable you to accurately calculate your Earnings Before Interest and Tax (EBIT).

The higher your operating income, the more profitable your business will potentially be, and this chart will help this metric from dipping through a mix of historical data and priceless real-time insights.

3. Operating Expense Ratio

The operating expense ratio (OER) is also strongly related to the profit and loss area of your finance department's key activities, and this color-coded health gauge will allow you to access the information you need, even at a quick glance.

The OER will give you the power to understand the operational efficiency of your business by comparing your operating expenses to your overall revenue. This is the best visual to show profit and loss, but you do need to connect it with other charts to create a proper financial data story. By monitoring this information regularly, you will be able to decide whether your venture is scalable and make necessary changes to your commercial strategy if you feel it isn't.

4. Current Ratio

Closely tied to the cash management dashboard , this financial graph example is essentially a liquidity ratio that will give you the ability to understand how equipped the business is to pay your most critical obligations in the short term, often within a 6 or 12-month period.

Presented in the form of two visual ratio calculations for swift access to your overall liquidity health or performance as well as a column chart to help you compare data and spot trends, this chart will ensure that you will be able to meet obligations, commit to payments, and quash detrimental roadblocks before they unfold.

5. Net Profit Margin

Presented in a similar format to the operational expenses graph, this particular profit graph makes it easy for busy teams to obtain and analyze the information they need to delve deeper into the health of your bottom line, as a result gaining the level of insight required to boost your overall net profits.

As one of the most vital financial KPIs a business can track, this graph is invaluable - and by using this robust, reliable, and intuitive chart, you will be able to iron out any inefficiencies and boost your company’s net profit over time.

6. Accounts Payable Turnover Ratio

Regarding the smooth and responsible handling of your company's cash management activities, the accounts payable turnover is another liquidity calculation that will ensure that you are able to pay all of your important expenses within the required deadlines or set timeframes.

The ratio itself changes according to real-time shifts and is displayed in a bold numbered format, while historical or chronological information is presented in the form of a column graph that showcases turnover percentages split into different periods of time. A higher ratio gives suppliers and creditors the assurance that your business pays its bills frequently and is a pivotal metric when negotiating a credit line with a supplier, so it's a chart your company cannot afford to live without.

7. Accounts Receivable Turnover Ratio

Presented as a scannable pie chart, accompanied by vital turnover metrics, this is one of the financial graphs templates that quantifies how swiftly your organization collects your payments owed, thus showcasing your effectiveness in extending credits.

The quicker your business can transform credit sales into cash, the better your liquidity, ultimately translating to a greater ability to handle your short-term liabilities.

8. Return On Assets (ROA)

This particular example is incredibly useful as it's a financial performance graph that will allow you to understand how well your business can leverage its assets to gain more profit.

Displayed in an easy-to-follow column chart and trend line format, this graph offers an exceptional visual representation of how profitable your organization is concerning your overall asset. The bottom line here is the higher your ROA, the better, particularly when you compare this metric to your direct industry competitors - so this chart is essential to your ongoing financial progress.

9. Return On Equity (ROE)

This color-keyed visual offers a distinct measurement of the level of profit you are able to generate for your various shareholders. This particular metric is calculated by dividing your business’s net income (minus the dividends to preferred stocks) by the equity of your shareholders (excluding preferred shares) - not only does this provide an excellent gauge of financial performance, but it’s also effective for comparison with other competitors within your sector.

The better your Return on Equity, the more value you are offering to your shareholders, which will translate to tangible long-term commercial success.

10. Gross Margin Return On Investement (GMROI)

A great retail KPI is the gross margin return on investment (GMROI). It is an inventory profitability indicator, and it measures the ability of an organization to turn its inventory into cash (after subtracting the inventory costs). The GMROI is calculated by dividing the gross profit by the average inventory costs. The result will tell you how much money you made from the inventory you invested in. An industry standard for this metric is a ratio higher than 1. However, experts recommend that a successful retail store should have a GMROI of around 3. This means the company is making money from its investment. On the contrary, a ratio below 1 means something needs to be done to improve profitability. 

A good practice when it comes to measuring the GMROI is to do it by product category. This way, you can understand which products return more and focus your efforts on those. 

11. IT Cost Break Down

This financial graph template focuses especially on the IT department, but you can easily adjust it for any other function in a company. We can see how the allocation of costs behaves in designated units (software, hardware, SP, and personnel) while depicting the cost percentage of each of their elements (for instance, administration, development, operations, and support). It's crucial to monitor the expenses graph to identify the main cost drivers on the one hand and possibilities on the other so that the company can adjust its strategies.

If you see that one unit spends significant amounts of resources, it would make sense to investigate further and check if the costs are justified or need more attention. By using relevant online business intelligence software , you can directly interact with all of the values presented in this visual and dig deeper as much as you need. Not only will you cut time into exporting, importing, scrolling, and searching for the right information, but your comprehension will be much quicker since humans are visual creatures, as stated earlier.

12. Cost Avoidance

Our list of financial data visualization examples wouldn't be complete without cost avoidance. This is one of the graphs that are important to take care of since it tracks how much costs, in this case, of a procurement department, have been saved in a specific time frame. You can also depict a 5-year trend like in our template above and organize it by supplier category. This metric is not as tangible as direct cost savings, for example, but it does bring value to the whole procurement department.

The goal of every procurement professional is to reduce costs in the future (as well as the present), and this chart can easily depict how much these efforts have brought in a company and had a direct impact on the savings processes. For instance, a procurement professional or manager can lock the price of a contract with a vendor to avoid a future price increase. To see more details on procurement operations and management, you can explore our set of procurement metrics .

13. Cash Conversion Cycle

The cash conversion cycle (CCC) is a metric that helps companies in tracking how much time a company needs to convert their resources into cash from sales. In our example, the formula is also simply depicted so that it can easily be followed: you need to add the day's sales outstanding to the days of inventory outstanding and deduct the days payable outstanding to calculate the cash conversion cycle. If you use a finance graph that you can interact with and calculates the data automatically based on your input, the possibility of making a human error is minimized. You don't have to calculate each time you need a report manually, but you can monitor your data in real time with just a few clicks.

In the end, the goal is always to decrease the cycle as much as possible since an increment can mean that the organization is not fully efficient in its management and operations. It's simple: if the company sells what consumers want to buy, the cycle is quick and healthy. If not, additional corrections need to be performed so that the company doesn't fall into even more serious difficulties.

14. Vendor Payment Error Rate

Paying invoices and issuing them to vendors, suppliers, or other stakeholders is essential to analyze since it can show how many errors are made and if the accounts payable department is healthy. Of course, mistakes do happen, but sometimes they can be dangerous, so they should be kept at a minimum. Errors may include payment to the wrong entity, overpayments, or double invoicing, and each accounts payable manager usually strives to reduce those errors as much as possible.

A proper financial and analytical report can assist in this process. When you automate and digitalize your analytics process with the help of modern software tools, you don't have to worry that your error rate will increase any time soon. In our example above, we can see that our average error rate is 1.3%, but it has started to decrease in the last few months. The goal should be to have the lowest rate possible and avoid any possible business disputes.

15. Operating Cash Flow

This cash flow graph gives a clear picture of the business operation's performance. The example presented above shows how much cash a company generated over the course of 5 years. It doesn't include investments and/or non-sales-related income, which basically means it focuses on main cash activities (for example, selling/buying inventory or paying salaries). This graph is important to track since it clearly depicts if a company can sustain its operations and eventually grow. It should be monitored closely and regularly to avoid any potential difficulties.

To create such a chart, there are some data visualization techniques that are useful to study and follow. That way, your analysis and presentation of vital information will yield the best possible value and ensure the most profitable results.

16. Fixed Operating Expenses

As its name suggests, the fixed operating expenses KPI tracks all expenses that need to be mandatorily paid in a specific time period and that will not vary depending on the volume of production or sales. These include salaries, rent and utilities, office supplies, marketing, and insurance, just to name a few. While these expenses are very hard to lower as they are not influenced by the production of the company, it is still fundamental to keep a close eye on them to make sure that they don’t go up too much as they account for a big percentage of revenue.

17. Variable Operating Expenses

On the other hand, variable operating expenses are all expenses that can vary depending on the production level of the company. We are talking about raw materials, distribution and costs, sales commissions, packaging, and many more, depending on the industry. They are easier to control and manipulate than fixed ones because they follow a simple rule: the more you produce, the higher the variable expenses. The more you sell from what you produced, the less impact from these costs. Companies also use their variable expenses to define pricing, plan their budgeting strategies, and track their profitability (together with fixed expenses), among other things. 

18. Actual vs. Forecast Income

Forecasting is the process of using historical and current data to generate accurate predictions about the future. In finances, forecasting has become an increasingly important practice that enables managers to generate strategies based on realistic scenarios. Our next example is a table displaying the actual vs. forecast income with insights into the actual value, the forecast value, and the absolute difference between the two. Here, we can observe a difference of $-33,237 in the net profit. This can shine a light on some issues that need to be addressed to prevent the business from having profitability problems in the future. However, it is important to note that the difference between the forecasted and the actual value is not necessarily a negative thing. It will depend on the way the business approaches forecasting.

19. Actual vs. Forecast Expenses

Following with another forecasting example, we have the actual vs. forecast expenses. This time, displayed in a financial bar chart instead of a table. As we mentioned in previous examples, keeping expenses at a minimum while maintaining profitability is one of the biggest challenges for organizations of all sizes. Here, we can see the actual costs compared to the forecasted value and an absolute difference between the two. Overall, we can say that this business was successful at keeping costs low as their absolute value is on the lower side. That said, there is still room for improvement. For instance, we can see that marketing costs are almost $50.000 higher than the forecast. This is something that is worth exploring in more detail to find the causes and determine if it is a critical issue or not.

20. Working Capital

Moving on with our list of financial chart examples, we have the working capital. This is a straightforward graph that gives you a glance overview of the financial health of your company. It doesn't include any ratios or proportions but solely numbers that represent the state of your current liabilities, current assets, and total working capital. If the working capital is high, you might want to consider investing the excess cash, as higher values don't necessarily mean your company is performing well.

21. Income Before Tax 

Our next financial chart template shows a summary of an income statement. We have mentioned the value of an income statement and discussed many of the KPIs present in it throughout this post. However, there is one missing that we will focus on right now: the income before tax, also known as EBIT. As its name suggests, the income before tax is a KPI that tracks the amount of income generated by a company before subtracting all tax-related expenses. It is used by managers and investors as a way to analyze the performance of a company’s core operations without considering tax costs, as they can cloud the actual operating values.

22. Berry Ratio

The Berry Ratio compares the gross profit of a company with its operating expenses to understand the amount of profit from a specific time period. In the chart above, we see that 1,0 is the reference coefficient to measure this metric. If your company’s Berry Ratio is below 1,0, it means that you are losing money. On the other hand, if it’s higher, it means that you are making a profit above all variable expenses.

This business graph is a fundamental part of a CFO dashboard , if you track it regularly, you can understand which exact period your profit dropped or increased and draw conclusions to improve your business finances.

23. Economic Value Added

This interactive gauge chart aims to track the Economic Added Value (EVA) of a company, the colors red, gray, and green make it easier to understand if the number is positive or negative visually. This metric is obtained by deducting the costs of capital from the operating profit and adjusting it for taxes on a cash basis. In order to calculate your company’s Economic Added Value, you can use a simple formula consisting of: net operating profit after taxes (NOPAT) - invested capital * weighted average cost of capital (WACC).

The EVA is a fundamental financial metric to understand if a company’s investment is returning any value. If a business has a negative EVA, it means that it’s not generating any profit from its investments. By measuring this metric on a regular basis, you’ll have a bigger picture of your company's wealth and make better managerial decisions in the long run.

24. Payroll Headcount Ratio

Next, in our financial data visualization examples, we have the Payroll Headcount Ratio. This metric consists of dividing all the HR full-time positions by the total number of employees based on various aspects such as their associated costs or revenues. You can include full-time and part-time employees as well as freelancers or contractors in the calculation. The overall aim of the Payroll Headcount Ratio is to understand how well your company is managing its workforce costs. 

By tracking HR metrics like the Payroll Headcount Ratio, you can make sure that your labor costs are well invested and bringing positive financial gain to your company, as well as help you understand if your overhead costs for payroll are too high, this way you can take action quickly and avoid any difficulties.

25. Procurement Cost Reduction

Cost reduction is an important KPI that you will find in any procurement dashboard . This metric's aim is to track the tangible savings you have made in terms of cost management over the years. The image above displays two charts to understand cost reduction, the first one is a 5-year trend so you can compare your performance with other years, and the second one gives a detailed view of the savings by supplier category; this way, you can learn exactly on what area you saved money.

By currently monitoring your cost reduction, you can streamline your supplier lifecycle management, increase efficiency by leveraging supply chain analytics or train your staff on how to save costs. All of this will certainly increase your numbers in the long term.

26. Cost Per Hire

This straightforward metric aims to track the number of resources you invest in each new employee you need to hire. In the pie chart above, we can see the yearly expenses divided by seniority level: Junior, Mid-level, and Senior. The chart covers all expenses that come from the recruiting process, such as marketing, time cost that the recruiter spends reviewing CVs and conducting interviews, as well as training and cost materials associated with it.

Although it might not seem like it, the recruitment process usually costs businesses a lot of money. By keeping track of this metric, you can optimize investments and extract all the potential out of your talent acquisition budget. In the end, investing in new talents is what will bring more value back to your company.  

27. P/E Ratio

Moving on with our list of financial graphics, we have the price-earning ratio (P/E). This indicator, displayed in an intuitive area chart, is used to measure the value of a company compared to its competitors. It does this by relating a company’s share price to its earnings per share. It gives potential investors an idea of how much money they would pay for stock shares for each dollar of earnings. The P/E calculations should always consider competitors from the same industry, as the values will considerably vary depending on the nature of each industry.   

28. Quick Ratio/Acid Test

Ensuring liquidity is one of the greatest financial aims of any organization. The quick ratio, or acid test, aims at helping companies understand their liquidity’s health in a short-term period. It measures the ability of a business to turn its near-cash assets (assets that can be turned quickly into cash) to pay down its current liabilities. The higher your quick ratio, the better. Your goal should be to keep it at a minimum of 1,0. This means your business has the capacity to pay all of its current liabilities quickly. 

An important note when it comes to monitoring this metric is to understand that, when comparing it to the current ratio, the acid test will always be smaller due to the fact that it only includes near-cash assets. 

29. Budget Variance

Next, we have the budget variance displayed in a table chart. This straightforward metric expresses the difference between budgeted and actual figures in different accounting categories. The values can be favorable or unfavorable and are clearly depicted with the colors red for negative and green for positive. This way, you get a glance notion of what is working and what is not. Negative budget variances can indicate that the company was not able to forecast costs and revenues accurately. However, some negative variances can also happen due to external factors that are outside the control of the organization. This can be changing business conditions, changes in the overall economic environment, or an increase in the costs of raw materials, just to name a few. 

30. MRR Growth 

To start explaining the MRR growth, we first need to understand what MRR even stands for. The monthly recurring revenue is the income that a business can expect to generate every single month. It is a fundamental metric that serves as a foundation for calculating other relevant indicators, such as the customer lifetime value or the average selling price. Tracking the MRR growth for longer periods of time can tell you how sustainable is your business model and how fast you are growing. 

This metric proves to be specifically useful for companies working with subscription-based models, as predicting recurring revenue is easier for them. Monitoring your MRR growth with a line chart is the most effective way to do it, as it can easily indicate how the values increased or decreased during the observed period. 

Which Chart Type Is Best For Visualizing Your Financial Data?

We couldn't finish this article before mentioning a very important aspect to consider when analyzing or presenting your financial data: charts and graph types. Choosing the right business graph to display your information is just like taking a picture of something and showing it to others. You want it to be understandable and focused on what you need in order to support a discussion. Here we show you some of the most common charts types to visualize your financial insights:

• Line chart: This type of finance chart is ideal for displaying multiple series of closely related data over a period of time; like this, you can find trends, accelerations, decelerations, or volatility in your data. Its minimalistic design consisting of thin lines makes this type of chart very easy to understand. In order to maintain it like this, you should always keep your axes scales close to your highest data point. This way, you avoid wasting valuable space in the chart. It is also important to consider only displaying the relevant metrics for your analytical process since too many variables can overcrowd the chart and make it hard to decipher. You can use line charts to track financial KPIs such as the return on equity, working capital ratio, or earnings before Interest and Taxes.
• Number chart: A number chart is one of the most basic types of business graphs, as it is essentially a ticker that gives you an immediate notion of how a specific KPI is performing. You just need to choose the period you want to track and if you want to compare it to a trend or a fixed goal, depending on the aim of your analysis. In finances, you can use it to measure metrics like the total cash balance, your current assets and liabilities, or some sales KPIs like the total revenue. Keeping track of these live numbers will help you catch any anomalies in time.
• Tables: Tables are a classic way of displaying information, and they can prove to be really useful for working with your raw data. You can use a table to display many precise measures and dimensions, always having the grand total to compare or support it. They can also be useful if several people need to access the data for different reasons, as they can filter it and work only with what they need. It is important to consider that due to its complexity, you should always try to make your tables as visually appealing as possible regarding colors and shapes. You can accomplish this with the help of a dashboard tool . In finances, you can use tables to display your profit and loss statements (P&L) to drive advanced insights into your company's revenues.
• Gauge chart : The gauge chart is a straightforward and simple type of visualization often used to display the performance of a single metric with a quantitative context. With the help of colors and needles, this type of chart aims to track the progress of a KPI in comparison to a set target or to other time periods. It is important to consider that because gauge charts are most effective for displaying one single metric, it is not the best chart to use if you want to drive actionable insights from your analysis. You can go back to our list of financial graph templates to see the economic value-added and the net profit margin illustrated with colorful gauge charts.
• Progress chart: As its name suggests, a progress chart aims to track how much percentage of a specific goal you have accomplished and how much you have left to complete it fully. The data can be expressed in circles or bar charts, and you can also add reference numbers to indicate where you should be in a specific time period and compare if you are late or advanced to accomplish your final goal. If you want a more detailed view, you can also break down your progress in different areas and track each of them separately to understand if any step-backs are happening and where. In finances, you can use it to keep track of your budget spending or the development of a big project where your company placed a big investment.
• Waterfall chart : This type of visualization helps understand the cumulative effect between positive or negative values to reach a final value. For instance, if a company wants to illustrate its yearly profit, the waterfall would display all sources of revenue and then add or deduct all costs to reach the total profit of the year. The additions and subtractions can be both time-based and category-based. In the use case we just mentioned, they are divided by category of revenue and costs. Our example on return on assets at the top uses a monthly division.
• Area chart : This type of graphic typically combines a line and bar chart to show how one or more numeric values change based on a second variable. The area chart differs from these two others by adding shading between the lines and the baseline. It is typically used to show trends between associated attributes over time. In finances, area charts are usually used to represent stock changes over time, as seen in our P/E ratio example above. 
• Bar chart : This type uses horizontal bars in a rectangular shape to display categorical data. They are mostly used to compare values based on a specific category, with the categories represented on the y-axis and the values on the x-axis (horizontal). They are used in finances when summarizing large data sets, as the horizontal orientation allows you to fit multiple values and categories without overcrowding the chart. For instance, when you want to visualize revenue by top 15 products.  
• Column chart : In many places, column and bar charts are considered the same. However, they do serve different purposes depending on the goal and the analytical context. Column charts display categorical data in rectangular columns that have a vertical orientation. This means they can fit fewer values before they get overcrowded. However, this doesn’t mean they are not extremely valuable. For instance, you can use them in finances to analyze your net profit by each quarter of the year. The sizes of the vertical columns can help you spot any under or over-performing quarters at a glance. Plus, they can be mixed with other types of charts, such as line charts, to provide an even deeper look into the data, as we saw in our MRR Growth example. 

 Although these might be considered the best charts for financial analysis, you should always consider what your analytical aim is and what questions you are trying to answer when picking your visualizations. Here we give you a useful overview to help you choose the right type of business chart depending on your goals.

Financial Graphs And Charts Best Practices

As you have seen throughout this insightful post and our list of 30 interactive examples, charts have the capacity to turn the most complex data points into understandable values that can significantly enhance the decision-making process and drive business growth. That said, financial data is not easy to deal with. While it might sound easy just to build a chart to display your most important performance indicators, there are still a few best practices you need to follow in order to make your visualizations successful. Here we tell you a few of them. 

• Think of your goals and audience 

The first step to generating successful finance-related visuals is to think about your audience and goals. This is a best practice that you should apply to any analytics-related task or process, especially when it comes to generating data visualizations for finances, as the language and data being used are complex and critical to the correct functioning of the organization.  

In that sense, there are two things you should consider. For starters, what are the company’s financial goals? Thinking about this question will help you plan your visuals to tell a compelling story that will allow management and any other stakeholder that needs to use those charts to answer questions and inform their most important strategic decisions. You can also think outside of the box and include some graphics that provide context or deeper insights. 

Paired with the general goals, you should also think about your audience. What matters to them, what is their level of knowledge, and what are they expecting to get from these visuals? By putting yourself on the audience shows, you’ll be able to generate visuals that are compelling and engaging. Plus, it will help users that are not very technical with finances to understand the message on each graph easily. We’ll discuss this last point as a separate best practice a bit later in the post. 

• Avoid unnecessary elements and be smart

The first best practice for financial data presentation is to avoid cluttering your graphs with unnecessary elements. To avoid this, you should first define a clear goal for the visual you are building. This way, you will be able to clearly distinguish which elements are needed and which ones are not. If you are using more than one axes, make sure that each of them provides value to the point you are trying to show. Otherwise, it can lead to a misleading interpretation of the data. 

Another important note here is to be smart about the way you present your insights. For instance, if you use a bar chart to show revenue growth over the past 12 months, it is only natural to order the values by month to see the progression. On the other side, if you are showing revenue growth by the department, it could be a good idea to order them from largest to smallest growth. This allows the audience to understand at a glance the highest and lowest categories. 

• Keep a consistent visual identity 

Charts and graphs are integral in communicating complex financial information in an intuitive way. That said, when building them, the colors you use can significantly affect how the data is perceived. A carefully selected color palette can help your audience understand the values better, as well as keep them focused during the analysis process. On the contrary, a poor color palette can make the visualization process less effective and harder to understand. 

A few good practices for this is to define specific colors for specific topics. For instance, you can use orange every time you will display revenue-related charts and play with the different shades of the color to show different values of revenue. That way, your audience will automatically understand you are talking about revenue when they see the color orange. Another good practice is to keep the colors consistent with the business's visual identity. This makes them more friendly-looking to the audience as well as more professional in general.

• Use understandable language

It is very likely that your financial goals will also affect the rest of the departments in your organization. If you want to increase sales in your online channels, then you need to connect with the marketing department to think of initiatives that can help achieve this objective. That same scenario can happen with several other departments. Hence, the need to make financial data understandable for every user level. 

That said, when building your finance statement charts, it is of utmost importance to use friendly language. If you are including acronyms in your axes, make sure you explain what they refer to. The same rule applies to any other type of technical language you include in your representations. You should always keep your audience in mind when building your charts.  

• Use interactive elements 

Financial data visualizations have been a part of businesses' regular operations for decades now. That said, the practice of generating visuals for the finance department has mutated with the years, shifting from static graphs and charts displayed in a PowerPoint presentation to modern online dashboards containing a mix of interactive graphics that allow users to navigate the data and extract deeper insights.  How, you might be wondering? The answer is interactive capabilities provided by modern data visualization software. 

Financial analytics tools such as datapine provide users with multiple interactivity options to give users the power to bring their data to life and uncover critical insights. Some of these interactivity features include:

• Drill down : This filter enables you to go into lower levels of hierarchical data all in one chart. For instance, imagine you are looking at revenue per product category and want to look deeper into a specific category. All you need to do is click on that category, and the chart will adapt to show the best-selling products in that category. That way, you’ll be able to find the reasons for certain trends and patterns without going through infinite charts. 
• Drill through: Similar to drill-downs, drill throughs also provide extra information from a particular chart, but instead of just going into lower levels of data, it shows the extra data in a popup. For instance, say you have a number chart displaying the total revenue of the year. A drill through would enable the user to click on that chart to see a pop-up displaying revenue by department. 
• Time interval widget: This filter lets you visualize different time periods in specific KPIs. For example, you might be visualizing revenue for the past 5 years and realize that year 3 had a huge spike. You can click on that year for monthly or weekly revenue.

These are just a few of the many interactivity options you can include when generating your financial graphics. If you want to know more about this topic, check out our guide on the top 14 interactive dashboard features. 

6. Tell a cohesive data story 

Expanding on the point above, it is no secret that finance users are acquainted with numbers and formulas, probably more than any other department. That said, in order to achieve a collaborative environment with other relevant business players, the data needs to be displayed in a way that tells a cohesive understandable story. Data visualizations allow non-technical users to identify trends and patterns in the data. However, this is not possible without a correct organization of the different graphs and charts. Modern dashboard software assists you with this task by providing a centralized view of your most important financial indicators. 

The image below is a financial dashboard displaying relevant metrics related to profit and loss. Being able to quickly see how the numbers fluctuated over time and how each indicator affected the other allows users to get a complete picture and make informed decisions.  

7. Gather internal feedback and adapt 

As you’ve learned from this list of best practices, building successful financial data visualizations is a task that requires thoughtful consideration of the design but also of the audience and final use case. That means there’s probably always room for improvement, and you should see that as an opportunity. 

After you generate your graphs and charts and present them to the finance team, you should gather feedback from all users and find improvement opportunities to make the process as efficient and personalized as possible. This may sound like an exaggeration, but the way you choose to chart your financial KPIs is going to set the groundwork for future strategic decisions. Therefore, it should not be taken lightly.

Key Takeaways From Financial Charts & Graphs

We have expounded on what graphs to include in financial analysis and explained in detail each of them. We hope these graphs and charts templates have given you the inspiration you need to optimize your overall financial reporting and analysis . If you would like more data-driven, business-based pearls of wisdom, explore these sales report examples that you can use for daily, weekly, monthly, or annual reporting.

To get a more in-depth knowledge of the financial statement graphs essential for your business, you can test datapine for a 14-day free trial !

Business Report Pie. Pie Chart Examples

This sample was created in ConceptDraw DIAGRAM diagramming and vector drawing software using the Pie Charts Solution from Graphs and Charts area of ConceptDraw Solution Park.

This sample shows the Business Report Pie Chart. The Pie Chart visualizes the data as the proportional parts of a whole, illustrates the numerical proportion. Pie Charts are very useful in the business, statistics, analytics, mass media.

Example 1. Business Report Pie.

Using the ready-to-use predesigned objects from the Pie Charts Solution for ConceptDraw DIAGRAM you can create your own professional looking Pie Chart Diagrams quick and easy.

The Pie Charts produced with ConceptDraw DIAGRAM are vector graphic documents and are available for reviewing, modifying, and converting to a variety of formats (image, HTML, PDF file, MS PowerPoint Presentation, Adobe Flash or MS Visio).

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Spending Plan Pie Chart Template

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Visualize your Spending Plan with an Easy-to-Use Pie Graph Template

Create your own Spending Plan pie chart – online in minutes! Start with our free templates and accelerate your workflow. Begin anywhere with Moqups.

Click on the example to open Moqups and start customizing our pie graph template.

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Top 10 Spending Chart Templates with Examples and Samples

Ananya Bhaduri

“Whenever expenses become greater than income, liabilities will inevitably become greater than assets." ― Hendrith Vanlon Smith Jr, US banker

Monitoring money flow or your company spending is critically important and provides stakeholders with an idea of what the management is doing. Disaster may lurk around the corner without a clear map and compass for spending. As a business owner or manager, you must design a system to track your expenses. This is a major pain point for which these high-ranking executives seek a solution.

We at SlideTeam are here to provide you with a powerful tool to guide your business to financial stability and prosperity – the Spending Chart Template.

Time management will be easier for you with Slide Team’s customized time management chart template, which you can get by clicking here .

Imagine having a bird’s-eye view of your company's expenditure in one comprehensive and visually-appealing document. With this presentation template, you can organize your expenses by category, month, or any other criterion, allowing you to identify trends, make informed decisions, and adjust your financial strategy. Whether it’s tracking operational costs, planning investments, or controlling cash flow, this template is your loyal companion for all financial needs.

If you want to integrate smooth budget planning, check out some eye-catching templates that SlideTeam has prepared.

This easy-to-use, content-rich, and 100% editable and customizable template reduces the hassle of calculations and messy spreadsheets, giving you more time to focus on what truly matters – growing your business.

Let’s begin!

Template 1- Spend Chart Template

This PPT Template provides you the personas of engaged customers and boosts brand awareness. This Spend Chart slide is a tool that helps you grab get a competitive advantage because of the content and the design. In 12 slides, the presentation template illustrates budget spending across sectors to increase customer engagement.

Download now!

Template 2 Product Marketing and Promotional Budget Spends Pie Chart Template

Are you looking for a way to perform a dose of product marketing along with a tracker of promotional budget spends? This PPT Slide covers marketing expenditure from the allocated budget. This PowerPoint Template showcases the percentages for online advertising, sales training, conventions, trade shows, print advertising, publications, radio advertisements, magazines, catalogues and brochures. Use this template to get critical insights about spending on promotional aspects and boosting brand awareness.

Template 3 Technology Spend Composition Chart to Accelerate Growth and ROI Template

Spending on technology is essential to accelerate the growth of an organization. This PowerPoint Template highlights the technology spend composition with the help of a pie chart. It includes expenditure on cloud, SAAS, software maintenance, etc. It compares the technology spend by five vendors. Use this template to accelerate growth and ROI, which go well with the themes of optimization, efficiency, and cost reduction.

Template 4 Chart Highlighting User Time Spending on Social  Media by Age Groups Template

Use this PowerPoint Template to represent how much time age groups spend on social media platforms. This slide shows the spending hours on a yearly basis in graphical form, and it also highlights average daily social media time in countries such as Asia Pacific, Europe, Latin America, the Middle East & Africa and North America. This slide helps you understand your target audience's preferences and behaviours and compare the popularity and reach of social media channels.

Template 5 Spending Plan Pie Chart PPT Slide Example Template

Use this twelve-stage process PPT Template to understand how budget is allocated among categories of expense or income. The template depiction helps you visualize and compare each category’s proportion to the total amount. You can use this spending plan pie chart template for personal finance or business planning.

Template 6 Spider Chart  Allocated Budget  and Actual Spending Template

Deploy our PowerPoint Template to highlight your budget allocation across the departments of your company. The cyclical graph compares the planned budget against the actual expenditure. Use this slide to compare actual spending and allocated budget within departments including sales, marketing, development, customer support, IT, and administration. Use this template to identify areas where the budget is overspent or underspent and evaluate the organization's performance and efficiency.

Template 7 Government Spending  in Pie Chart Gear PPT Template

Demonstrate government spending with the help of this pie chart gear PPT Template that experts have designed. This chart highlights the distribution of government spending across the five sectors of: Health care, social security, political contribution, income security and food & agriculture. Use this template to communicate the priorities and goals of the government to the public. The slide showcases an impressive visual to compare and contrast spending patterns of countries or regions as well.

Template 8 Pie Chart Gear  for Govt Spending Template

This PPT Template showcases each spending category’s relative size and proportion and the total amount spent. Use this slide to depict government spending in healthcare, welfare and education sectors. Use this presentation template to understand how changes in one category affects others and how the government can balance its spending priorities.

Template 9 Retirement Savings and Annual Spending Chart Template

Use this PowerPoint Template to plan for your retirement by estimating how much you need to save and spend each year. This slide depicts retirement savings with the help of a graph, and the savings are measured in percentile. Use this slide to visualize your retirement income and expenses over time and compare scenarios based on your assumptions and goals.

Template 10 Year-over-Year  Multiple Pie Charts  with Total Spending Template

Are you looking for an effective tool to track total annual spending? Don't worry! Here's our PPT Template that showcases the comparison of total spending in categories year-wise with the help of multiple pie-charts. This slide compares three consecutive years. Grab this slide to visualize how spending patterns have changed over time and point out areas, where the spending has increased or decreased the most.

Whether it's managing the spending of your business organization or personal expenses, using the spending chart templates makes it easier to track expense records and stay organized. With these slides, you visualize all your spending and become more aware and conscious about managing the finance bit of your business.

If you want to maintain flawless track record of your spending, please check out some of our customized templates on expense prepared by Slide Team; click here to know more.

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