Before you can ask for money to finance your business start you have to make budgets. If you can manage to make 3 different kinds of budget you have come very far.
In order to estimate how much money you need before the start-up of the business, you must work out an establishing budget.
The establishing budget provides an overview of necessary expenses incurred
right up until the business start. It is not until after start that you will be
able to gain an income.
Go to Establishing 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.
When all the expenses for a year are added together and subtracted from the
income, you will get the profit and loss statement. The profit in the company is
your salary. Profit is what you can take out of the company for personal use.
Go to Operating Budget
In order to figure out your need of 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 – often a month.
Go to Cash Flow Budget
Remember, either you control your money or it will control you.
- T. Harv Eker, auther and speaker