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Step 7 - Budgets

In this part of the business plan you must:

  • Put financial figures on your business idea
  • Convince readers with financial eyes that you have a viable business idea

By means of budgets, it is possible to calculate how much it costs to set up a business and how much it costs to keep the business running.

Budgets, for many entrepreneurs, are one of the worst things about starting. They are afraid of it and think that only accountants can make budgets. It is not true.

Budgets are rather simple to make. It is simple addition and multiplication. Just take it one expense at a time.

Budgeting is easy

For a start-up company, you might need to purchase 5 chairs for the office at $50 each. The line in the budget will say:

  • 5 chairs x $50 = $250.

Budgeting is that easy. One line at the time and then use your skills in addition and multiplication.

Business plan questions

In the budget part of the business plan you can download budget templates and you are asked to make the following budgets:

Establishing Budget

In order to estimate how much money you need before the start-up of the business, you must work out an establishing budget.
Read more about establishing budget.

Operating Budget

The operating budget provides an overview of the costs of running your business. The operating budget gives you an overview of the company’s day-to-day expenses. It also gives you a chance to calculate an estimated turnover.
Find out more by reading about operating budget

Cash Flow Budget

In order to figure out your need for cash at the end of each month, you have to work out a cash flow budget.
A cash flow budget is a chronological overview of expected income and expenses over a given period of time – oftentimes a month.

Read about cash flow budget

Download business plan template

Go to Download Center and find the templates in which you can make your own budgets.

Remember, either you control your money or it will control you.
- T. Harv Eker, author and speaker

Download Business Plan templates
9 Steps to Start a Small Business
Step 1 Entrepreneur /Team Resources
Step 2 Product or Services
Step 3 Description of the Market
Step 4 Sales and Marketing
Step 5 Organising your Company
Step 6 Business Development
Step 7 Budgets
Step 8 Financing
Step 9 Business Concept
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