Business Budget Plan Example – A good business must have clear goals, timelines, and budgets. This also applies to a home-scale business. Therefore, it is essential to make a Budget Plan before starting a business to see how much it will cost and whether the cost is suitable for us.
A Budget Plan is an estimate of the expenses and the income we will get over a certain period. By making a budget plan, we can monitor the costs that need to be incurred in order to avoid losses.
If this is the first time you want to start a business and are still trying to understand how to prepare a budget plan, you don't need to worry, the Whiz App comes with 6 easy steps to create a business budget plan and examples. Come on, see the stages!
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6 Easy Steps to Make a Business Budget Plan
1. Determine the Purpose and Time to Use the Budget
The first stage is making a budget plan, determining the business's budget to buy anything and when to buy it.
If we have set goals and timelines in advance, we can get a rough idea of what costs need to be incurred. It also makes setting a maximum limit for expenses incurred and expectations easier.
2. Sort Requirement List
The second step is to sort in detail the list of items that must be paid for, purchased, or rented. Try to write down all things in detail and categorize them by type. The goal is to make adding and calculating the final result more accessible.
Of course, sorting the list of needs also needs to be done so that the money used for the business is balanced with the cost of meeting the family's daily needs. That way, family finances will stay organized. You can also use money management apps to help organize finances.
3. Determine the Number of Items
After sorting in detail what items are needed, we need to determine the number. Make sure the amount written fits your needs, not too much or too little, because it can cause material losses.
4. Product Price Research
Next, we need to research the prices of the items we need. The goal is that we can get the best price in the market that fits our budget. Please refrain from using money that we will spend for family needs. As a result, the family's finances became irregular.
An easy way to research prices for goods is to write down the item's name, the brand, and the cost per item. After that, we can compare prices and the brands most suitable for our business.
5. Calculate the Amount of Budget Required
After getting the number and price of the items needed, it's time to calculate the total budget amount. Add up all the costs of the goods we have made in the table, and ensure everything is correct in the calculations. The total sum price is our monthly expenses later for the business we are doing.
If you have trouble, you can also take advantage of money management apps so that it is more practical to calculate the budget you will need.
6. Do a Budget Evaluation
The last step is to prepare a draft budget for business costs to evaluate the data we have already compiled. After getting the funding needed, we need to assess whether the amount follows the budget that we can spend.
In addition, we also have to see if there are errors in the data. If the data is not appropriate, this is the time to make improvements. Please make sure the result is what we want.
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Those are the stages of preparing a business cost budget plan that needs to be done. To be clear, here is an example of a home budget plan that has been made. You can use it as an example for your budget plan.
Example of a Home Business Budget Plan
Next, the Whiz App has several budget plans for home business expenses that can add to your allowance. You can follow these examples partially. However, you can adjust it according to your needs.
You can make a budget plan table by listing the brands/types of materials that will be used in your business. By including the brand/type, the estimated price will be made in more detail. An example of the RAB can be seen in the following table.
Apart from these tables, you can create tables with other models like the following example we will share. This table does not contain the brand/type section as before. However, it only involves the item's name, the amount, the cost, and the budget.
However, there are also choices of other budget plan table models. This model would be suitable for those more comfortable with table presentation. The following RAB only lists the names of the items needed and their prices. Meanwhile, the number of goods and the cost of goods per unit is represented by the "@" symbol.
Apart from the three examples above, there are also other budget plan models. The following model separates the costs incurred for production equipment and different needs. Thus, the expenditure costs will be more detailed between parts of the tool and other conditions needed to open a business.
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Those are the steps for compiling a business budget plan and an example of a home-based business budget plan. With good planning, it's guaranteed that a home-based business will add income to pocket money and also your family's finances!
You can also manage your business income while learning financial literacy through the Whiz App. The steps and examples above can be helpful and applied to your business!
Updated by (Aulia Maulida)
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