Having a budget plan for a business is the first thing to do. You will never run a successful business if you never control your spending. The sample business budget is the best tool you can use to reach your goals. This will help you break down any details about the expense and the future income. Besides, you can track your expense through this document which this also enables you to see you are overspending or not.
Why Your Business Need A Sample Busines Budget ?
The best benefit when you create the business budget plan before starting producing is this will help you figure out that you have sufficient income for certain quantity. Running a business is never easy! You will always find a fluctuating material price which this should be updated regularly so it won’t hurt your business. Making a business budget plan is the best way to forecast your financial strength. Besides, this can minimize your business risk. In short, the budget plan will help you indicate some things below:
- The money you need for materials and labor
- The total cost of a new business
- Operation cost
- The revenue to support the business
- Expected profit
Besides, the business budget should include the expenses, revenues and also profits so you can know whether you still have the remaining business capital. In business, the budget is usually set up annually which is known as the annual budget plan. Then, this budget plan will be broken down into 12 months and this will contain details of the business activities from expenses to the income.
How Does A Sample Business Budget Plan Help You?
Our sample business budget gives you guidance on how you should manage the capital before starting to produce something. Besides, the samples are also editable that you can custom as your business planner.
Here are some tips on how to create a better business budget using our template:
- Examine your revenue – You can always examine your revenue by looking backward on your previous report. Keep in mind you only calculate the revenue, not the profit because this is not a personal budget plan.
- Subtract Fixed Costs – Next is subtracting the fixed costs. This includes all of your fixed costs to operate the business, for example, the taxes, insurance, depreciation of assets, rent, supplies, and payroll.
- Determine the Variable Expenses – List out all of the fixed costs and then notice if you can find the variable expenses. The variable expenses are the changes. Besides, notice also some unnecessary spending but it will be a good thing if you add it up as the part of the program such as, education, and other extras that increase your profitability. Some examples you need to know are utilities, office supplies, owner’s salary, replacing old equipment, professional development until the marketing costs.
Set Aside The Unexpected Costs and Contingency Fund – Never mix the unexpected costs with contingency fund. This fund always rises when you least expecting it. Therefore, you need to add extra costs but you have to set aside.
Sample Business Budget Template