BUDGET

A budget is a detailed analysis of what your expected revenues and expenses are. Your income will include different type of sales or product lines and your expenses will include direct costs such as your payroll or your cost of goods (gross margin) and your indirect costs such as your rent or insurance (net margin).

To be useful, a budget needs to be based on realistic numbers and assumptions. Reviewing your budget on a regular basis with your actual figures will help you keep an accurate picture of your finances and be proactive in adjusting as needed.

Creating a budget allows you to:

  • Identify your opportunities for cost cutting and efficiency
  • Ensure that your cash on hand covers your upcoming expenses

BUDGET

A budget is a detailed analysis of what your expected revenues and expenses are. Your income will include different type of sales or product lines and your expenses will include direct costs such as your payroll or your cost of goods (gross margin) and your indirect costs such as your rent or insurance (net margin).

To be useful, a budget needs to be based on realistic numbers and assumptions. Reviewing your budget on a regular basis with your actual figures will help you keep an accurate picture of your finances and be proactive in adjusting as needed.

Creating a budget allows you to:

  • Identify your opportunities for cost cutting and efficiency
  • Ensure that your cash on hand covers your upcoming expenses

FORECAST

Preparing a realistic forecast for your future sales is a key part of creating a strong budget. Forecasting is at its best when based on past sales figures and well-researched assumptions in order to predict your future performance.

Making your forecast requires:

  • Past sales figures (ideally on a monthly basis)
  • New sales contracts and non renewable contracts

Financing is central part in growing your business. A solid budget tells investors and lenders that you have a well thought-out plan of your objectives and goals. A reasonable forecast shows that you have researched your business strategies and are aware of the pitfalls.

FORECAST

Preparing a realistic forecast for your future sales is a key part of creating a strong budget. Forecasting is at its best when based on past sales figures and well-researched assumptions in order to predict your future performance.

Making your forecast requires:

  • Past sales figures (ideally on a monthly basis)
  • New sales contracts and non renewable contracts
Changes and prosperity in the size of your market and the economy as a whole

Financing is central part in growing your business. A solid budget tells investors and lenders that you have a well thought-out plan of your objectives and goals. A reasonable forecast shows that you have researched your business strategies and are aware of the pitfalls.

BUSINESS PLAN

Whether your company is a start-up or has been active for several years, your business plan is your sales pitch plan. It must convince readers that your proposal has the potential to be successful. Your ambition, your dedication and your confidence should be apparent. Avoid high technical terms and make straight to the point.

Your plan should project the current reality of your business and your industry. Address your mission statement and your vision in reaching your goals.

A business plan can:

  • Identify strengths and opportunities and mitigate risks and threats you may encounter
  • Create a strategy to stay competitive and communicate your vision
  • Make sure your ideas and your capital investment is put into a viable commerce
  • Help you access financing from lenders and investors

BUSINESS PLAN

Whether your company is a start-up or has been active for several years, your business plan is your sales pitch plan. It must convince readers that your proposal has the potential to be successful. Your ambition, your dedication and your confidence should be apparent. Avoid high technical terms and make straight to the point.

Your plan should project the current reality of your business and your industry. Address your mission statement and your vision in reaching your goals.

A business plan can:

  • Identify strengths and opportunities and mitigate risks and threats you may encounter
  • Create a strategy to stay competitive and communicate your vision
  • Make sure your ideas and your capital investment is put into a viable commerce
  • Help you access financing from lenders and investors