Budgeting 101
Each business cycle requires different style of budgeting
Playbook
Each business cycle requires different style of budgeting
Budgeting for small businesses are an essential tool. It will help in knowing if a business can continue with the projected income and expenses. It’s useful in different stages of the business cycle.
Launch: Business Proposals need budget numbers. You need to know what it will cost you to open your doors on the first day of your business. It includes inventory, furniture and fixtures, computers, software, and the costs of finding and securing a location for your business.
Operating and running: Taking a loan for the existing business. A budget shows your lender how much you need and what your cash flow situation will look like in the first three years of your business. A reasonable budget can increase your credibility with your lender.
Managing and growing: Plan how much you can spend each month such as taking salaries from the operations. Budgeting also helps you plan the required profit as per Industry standards.
Software companies such as Quickbooks allow small businesses to create budgets. The two things to keep in mind while preparing a budget are fixed and variable expenses along with the income.
Read more: How to create business proposals Link