I am even more serious!
After doing your startup budget, it is time to do a forecast or an operating budget. I like to do it over three years but you can do it for less if you aren’t sure of the expenses or sales at all.
I use this budget template that I modified to my first online shop.
If you make any changes to it, make sure you add the new row to the calculations.
If you haven’t done a startup budget yet, read about why you need to make one, in my blog post:
Of course, it is just a forecast and you probably will use more money than anticipated, and therefore you should always multiply with something between three and seven.
It is always better to be prepared for unpredictable expenses than get surprised by them.
It is a simple operating budget
The budget isn’t hard to do or understand. You just have to plot in the amounts you know and think you are going to use. How much your sales will be and so on.
It will take some time and you might not want to do it but doing this, will help you with the process of reaching your goals.
It is just a forecast
If you after a few months can see that you have hit way off, you can always adjust the budget or make a new one. There isn’t any shame to it. It is actually a great way to reevaluate your business plan.
Not sure of how to make an easy and fast business plan?
I know a great and easy business plan to get you started.
Until next time!
P.P.S. Get the operating budget template now!