Habits of highly successful SMEs: Business boosting budgets
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NAB Short Course - Sponsored Feature
This is an excerpt from Business Spectator's new short course on Successful Habits. Click here toread the rest of the article, plus the remaining nine articles in the course.
Budgeting and sticking to it
Getting your finances in order involves making sure your business has two budgets: an operating budget and a cash flow budget.
Operating budget
Your operating budget should be a prediction of all expected revenues and expenses over a one-year period.
It needs to project your gross and net sales along with net profits and losses.
Expenses are likely to include one-off expenditures such as equipment purchases and ongoing expenses such as rent and wages.
An operating budget allows you to try out different assumptions in advance for variables like pricing and staffing levels so you can take your best shot at making a healthy profit …
Click here to read the rest of the article, the final of the ten articles in the course.
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