Deciding to go out on your own in business is a big decision, and you want to be confident you’ll have the financial backing to not only start the business, but to also keep it going and growing in the future. You can’t do this without preparing a well-considered budget not only for now, but for at least five years down the track. Your budget will call for speculation as to sales and expenses, but you want to try to ensure that you do as much as you can to ensure your estimates are informed as possible. Going into business is a gamble, but it’s made less risky if you do your research first.
When preparing your budget, particularly before you start your business, BizNatal recommends you also look at how much you need from the business, bearing in mind you will either likely be quitting your employment or, at the very least, will have less time to spend on employment.
At BizNatal we’re all about helping you start a small business on a shoestring, but you need to realise this doesn’t mean you can start a business without any funds at all.
This module includes an e-book and two downloadable templates.
Videos are proposed to be added in the future.
This unit is designed for those who have done their market research on the potential for the business to make a profit and assumes you already know:
- An estimate of what you’re planning to charge for your products or services
- Estimates of expenses, including costs of inputs
- An estimate of how many units of your products or services you believe you will sell
- If this is a start-up, an estimate of how much money you’ll need to draw from the business to survive and thrive.
All information provided in this module is designed to be general advice and BizNatal recommends you seek the advice of a financial management professional or accountant to assist you to make informed financial decisions about your business.
In This Module
- What is a budget and what’s its purpose?
- What you’ll need to know before you start
- What you need to include in your budget
- How do you track budget performance?
- Special considerations when budgeting for a startup
- Where to go for help with numbers
- Guide to using the budgeting templates
- Excel spreadsheet incorporating basic budget/cashflow forecasting tool, budget tracker and five-year forecast
- Excel spreadsheet to help you plot your startup costs