Business Budgeting Made Easy: How to Create a Budget That Works | Karlene Sinclair-Robinson | Skillshare

Playback Speed

  • 0.5x
  • 1x (Normal)
  • 1.25x
  • 1.5x
  • 2x

Business Budgeting Made Easy: How to Create a Budget That Works

teacher avatar Karlene Sinclair-Robinson, Business & Financing Strategist, Author,

Watch this class and thousands more

Get unlimited access to every class
Taught by industry leaders & working professionals
Topics include illustration, design, photography, and more

Watch this class and thousands more

Get unlimited access to every class
Taught by industry leaders & working professionals
Topics include illustration, design, photography, and more

Lessons in This Class

12 Lessons (57m)
    • 1. Welcome Message

    • 2. Budgeting Objectives and Topics

    • 3. Session 1 - Introduction to Budgeting

    • 4. Session 2 - Functions & Fundamentals

    • 5. Session 3 - Types of Budgets

    • 6. Session 4 - Uses of Budgets

    • 7. Session 5 - Budgeting Stages

    • 8. Session 6 - Gathering Information

    • 9. Session 7 - Planning Your Budget

    • 10. Session 8 - Financial Aspects of a Budget

    • 11. Session 9 - Financial Statements

    • 12. Session 10 Final - Monitoring Your Budget

  • --
  • Beginner level
  • Intermediate level
  • Advanced level
  • All levels

Community Generated

The level is determined by a majority opinion of students who have reviewed this class. The teacher's recommendation is shown until at least 5 student responses are collected.





About This Class



How to Create a Budget that Works

This course is designed to help startups and small business owners create a budget they can use. It is designed to aid in the development of a budget that addresses the financial needs of a business while addressing the company's need for sustainability, growth and fiscal responsibility. 


At the end of this training presentation, you will be able to:

  1. Understand the importance of budgeting and its role in your financial success.
  2. Identify key financials you should use to create your budget.
  3. Prepare a budget that works for your business.
  4. Identify best practices to create and maintain your budget.
  5. Use a budget to effectively manage your business and make better financial decisions.



This budgeting course will cover the key areas you need to focus on to creating your very own budget. 

  •  Session 1 – Introduction to Budgeting
  •  Session 2 – Budgetary Functions & Fundamentals
  •  Session 3 – Types of Budget
  •  Session 4 – Uses of Budgets
  •  Session 5 – Budgetary Stages
  •  Session 6 – Gathering Information
  •  Session 7 – Planning Your Budget
  •  Session 8 – Financial Aspects of A Budget
  •  Session 9 – Creating Your Budget
  •  Session 10 – Monitoring Your Budget


Listed below are three (3) key goals each student should be able to achieve:

  1. Student will be able to identify what should be included in a budget.
  2. Student will be able to create a budget that fits their business model.
  3. Student will learn how to adjust their budget over time.


Meet Your Teacher

Teacher Profile Image

Karlene Sinclair-Robinson

Business & Financing Strategist, Author,


Hello, I'm Karlene Sinclair-Robinson.

I discovered my passion through supporting business owners over the past 18-plus years. I have used what I learned as an entrepreneur to help others who were finding it difficult to advance their companies.

I have been teaching entrepreneurs well over 11 years now, where they continue to demand more of me. I am excited and love what I do. I have worked with clients in many industries and continue to do so today.

Who is Karlene Sinclair-Robinson?

I have been dubbed 'Business Knowledge Superstar', and "The Queen of Business Financing", and I am also an author of the books on business and financing. I am considered a foremost expert on 'Alternative Business Financing' and success strategies for startups, small business... See full profile

Class Ratings

Expectations Met?
  • 0%
  • Yes
  • 0%
  • Somewhat
  • 0%
  • Not really
  • 0%
Reviews Archive

In October 2018, we updated our review system to improve the way we collect feedback. Below are the reviews written before that update.

Why Join Skillshare?

Take award-winning Skillshare Original Classes

Each class has short lessons, hands-on projects

Your membership supports Skillshare teachers

Learn From Anywhere

Take classes on the go with the Skillshare app. Stream or download to watch on the plane, the subway, or wherever you learn best.


1. Welcome Message: Hi, everyone Welcome. My name is Carl Ian Sinclair Robinson and I want to thank you for stoppin and taking the time to try out one of my courses. It is very important that we learn the skill sets we need to grow our businesses. And so with that, I am presenting courses that can help the business owner you, that individual that needs the ongoing support, trading opportunity to help develop and grow your business. It's all about what you know, and what you don't know can hurt you. So with that, I am presenting this particular training program specific to budget in for small businesses because when you don't learn toe budget, you will encounter problems. And so, in order to make sure that you understand the processes that things you need to think about , the things you should not do and should do are creating a budget. It is vitally important that you understand that the things that you should work through to creating ah budget that is logical, one that you can work with, one that is potentially a Z close to what reality could look like. So working with a budget is going to help your business. And so make sure as you go through this training that you follow the steps and process the information accordingly. Make sure you acts questions, sent feedback and be sure to complete the assignments that you're you're given any project related work that you receive. So with that, I want to thank you again for stopping and taking the time to watch a use my training opportunities to help you with your business. Thank you. 2. Budgeting Objectives and Topics: Welcome to budgeted made easy how to create a budget that works here. The learning objectives for this training program to help you through the budget in process . Develop in a budget for your business. At the end of this training presentation, you will be able to want understand the importance of budget in and its role in your financial success. You will be able to number to identify key financials you should use to create your budget . Three. Prepare a budget that works for your business. Four. Identify best practice is to create, add maintain your budget and five used a budget to effectively manage your business and make better financial decisions. These are the learning objectives for this training program, the topics that we will cover in business, but it in made easy how to create a budget that works. Will include Session one introduction to budget in Session two. Budgetary functions and fundamentals session three types off budget Session four uses off budgets. Session five Budgetary stages. Session six. Gathering Information Session seven. Planning your budget Session eight. Financial aspects off a budget Fashion nine. Creating your budget and number 10 Session 10 Money. Turn your budget. These are all the core areas that we will cover during this training program. 3. Session 1 - Introduction to Budgeting : Welcome to Session one in Session one. We will cover the introduction to budget in what you need to know about budgeted. What is a budget? What do you need to know? That makes up a budget? What goes into creating that budget and lots of questions to acts yourself. But in this introductory piece, we will cover some key fundamentals. About one is a budget, so a budget is a financial plan for revenues, expenses and profit over a certain period of time. So you're going to define for your business what time frame is best suited. So if you're looking at a budget for an annual process, so you want to plan for the next year, creating a budget around a one year timeframe is definitely something you should think about doing and then breaking it down into orderly a week monthly or weekly budget processes that can help you. So you definitely looking at the way you generate revenue, the expenses and potential profit that you might have in your business. One of the key roles off it off the budget, so your budget should help to answer some key questions. Some important aspects of your business so the budget plays a role as a financial plan. It is a part off that financial plan that you need to create for your business. Then the budget also plays a key role in the method for financial control. So you need tohave some measures in place that's going to help monitor how your money is coming in and how your money is going out. And so you have some financial control, our own, how your money is spent within your business, what happens internally and what happens externally. And then you can use the budget as a performance evaluation tool. It is very important that you understand the role a budget plays overall in your business, and so you can use it to see if your business is joined. Well, ah, if it's if it's not performing at the optimum level. And where are the potential issues that you might be encountering? So those air, some key things to think about when you decide to create a budget, what role do you need it to play? And so it has a variety of roles that you should consider. Then why should you create a budget? Why should you budget. It is important that you understand it. The reason behind how budget could help your business, how you could focus your effort and be able to see a profit at the end off the time frame. So we definitely don't want to be over budget, right? A t end of the day. Those who go over budget oftentimes go out of business, so you would not want that for your business. So from there, get to know your business is going to help you understand those key financial areas off your business. It's going to help you to be prepared, right? So if if your CPN needs some financial information, if another source needs information from you, you could readily present that information. So with that, the budget can help create creativity. It can help fuel opportunities for you to be creative within your business. We didn't you know, your whether you have a department, different departments within your company that can help to fuel creativity. That budget helps to do so with that. It also provide benchmark. So you have some gold, some things that you want to strive toward. Then the budget can help you put these key benchmarks in plate. With that, it can help to uncover any issues that you might your business might have and then coordinate in amongst apartments that can help. Whether you're doing it internally or let's say you're a single member company, you're the only person within the firm. Then that would be able to help you figure out externally what you need to do and then internally water. Two different things to help make sure that you stay on track and not be over budget, and then make sure you involve your employees. If you have employees involved them because at the end of the day they are part of the team . They make up your business also, so you want to make sure you get their input with that hair. Five. Budget in facts You need to be mindful off one. It helps to predict Cashel fluctuations. What do I mean by cash flow from fluctuations? It basically shows where you're going tohave peaks and valleys within your cash flow. Within the money that you have to, you need to bring in on the money you need to spend. So where are you going to have more money? going out on more money coming in that kind of stuff, and then it demonstrates whether you can repay alone or not. What kind of loan options do you need to consider whether you could consider a larger loner a smaller mode based on what your budget could accommodate? So you want to make sure that you are paying attention to how your budget plays a role in your ability to actually consider access in financing for the business. Then it also highlights areas that might need improve it. I mentioned this before, but it is a far a budget will bring forward those issues that are surrounding the business . So whether it's ah, here, we're not making enough money or we have too many expenses or the budget shows that we could spend some more in certain areas. It all depends on your business. Then it helps to curb employees. Financial fraud. This is something that often times business owners don't pay attention to. For those a few war using this training to help you make sure that if you have employees, you're putting certain checks and balances in place to help eliminate or keep the level of fraud down. We don't want tohave that within your business, because again this could derail your company. This could put you out of business. It's a far You just have to look it up to know that this is actually happening today. So let's not become us one of the statistics in this process. With that, it also helps you to do planning for long term processes the financial forecasting that you need to use to get you to that next level to give you an insight into the possibilities and the viability off what your business could do, what you could do with your business. So make sure that you are taking a close look of what your budget is, what it should look like and make those necessary changes. So just some facts to help. You better understand what goes into budgeting and what what it looked like 4. Session 2 - Functions & Fundamentals: Hello and welcome to session to off budget. In made these in this section, we will cover budget in front functions and fundamentals. What do we need to be aware off for budget in functions or the functions of the budget? You need to be mindful that it is a part of your planning process. You need to use it to help you get to that next level. It helps you to set priorities. Where are you the priorities for your business? No to businesses the same. So make sure that you know your priorities and what the role a budget, please in this process is going to help you toe allocated. Resource is what are the resource is that you have access to that. You need to divvy up to be able to function effectively. And so using the budgetary process is going to help you allocate. Those resource is, then it's going to help you determine what are the responsibilities are. So what type of responsibilities do you have that must be covered through the budget? What have you extended yourself to? Whether you have the boys to pay or you have other priorities, plays a roll. These must be addressed to the budgetary functions. Then again, I cannot say this enough that it is an evaluation to, and you need to use it as such. One of the fundamentals off budget in the fundamentals of budget in will speak to the expenses that the budget creed utilizes are easier to cree those X expense budget. When you think of it, you it's gonna be easier for you to identify what your expenses could look like for a business. So if you've been in business before then you have some past historical information you can use. If you have not been in distance before then you're going to need to strategize and do some research. You find out okay, what are the offenses and that you might have. And what's the cost associated with those expense? Then you need to figure out being conservative when you consider budget in for revenue. It's great. We want to make a lot of money, but at the end of the day, if it's not logical, if it's not tight Teoh processing how you're going to generate money if you're selling widgets or you're selling hourly services, what exactly are you doing that is going to impact the bottom line, that revenue coming in sales, you name it. So you need to make sure your conservative in the process off planning for revenue growth. Then you wanna build your budget using a day to day information you used to run your business. So for those of you again, I say who have been in business already, make sure that you use that information you already have access to if you've not been keeping a track than you're going to have to stop and put it together and for those were starting out using this training, definitely Look at what you expect to dio, and this is going to help guide you to figure you know what you should put in the budget. And then you want to use the budget regularly as a roadmap toe operate in your business because at the end of the day, what's the point of creating this budget without utilising it? So make sure that it is a document that you can readily access and take it. Make appropriate changes as you see fit. I don't suggest you get up every week trying to the changes to the budget and not pay attention to operate in your business. All right, so make sure that you're planning and you're putting things in place on your utilizing that the tools that you have at your fingertips. With that how do you go about creating a good budget in system? So we want to make sure that everybody is involved. Who needs to be involved? Whether you're that single person in the company you're going toe, connect with your C P. A. You're going to look at all the expenses that you need to incur. Who's going to help you with that? The profitability factor of your business? How are you going to generate revenue? Who must you deal with? So make sure the key people that needs to be involved with your business on budgeting process are involved with that said, Definitely any employee. If you have department, um, that that plays a role in how you're allocating your your dollars. Make sure that the key folks are involved. The budget needs to be used, right? So what's the point again? I'm repeating myself, but I can't say this often enough if you use it. If you created user If you have not created one, stop and do so and then make sure to use it. I'm repeating myself, and I know this. Please utilize it as a performance tool. It helps to create desired behavior. So once you have a guideline, this is what you need to follow. Then, more than likely those involved, including us, the owner of the business will keep that number that those dollar figures in mind when you're dealing with whatever aspect, cough the business that the budget impacts from there and it should allow for flexibility because again, you can't be so straight that there can be some flexibility to, depending on what's going on with the budget. Create utilize some process to make changes were open then. Ah, horse you want. You want to document some assumptions that if the business is doing why, then you could do X or whatever else that you could consider for the business, right? So when you think about what are these key things that you need to do for the business than if the budget If you're generating more revenue over a certain period of time, here's some assumptions that you can meet you can spend more, you can put more to market, and you can put more into buying equipment or whatever it is that you might need to do for the business. So make sure you're planning according me and then use it. Used what you have, right? So I'm not going to tell you to run out and get a budget in software today, but at some point you will need to. So for now, there's a few who need to use Excel, Use Excel or any other financial tool that you have at your fingertips that you can use and then when the time is right to go by the ideal type of financial tool that can help you create that budget. 5. Session 3 - Types of Budgets: Session three. Welcome Welcome. In session three, we will cover types off budgets, one of those common types of budgets that you need to be mindful last that you could use for your business. You need to pay attention to definitely how you're going to make money, that sales income revenue are what type of revenue do you have coming in? Are you selling goods? Are you selling products? Are you creating opportunities to generate multiple streams off revenue? Multiple streams of income? What exactly are you doing that's going to be effective in how you generate money being deposited to your bank account? Those are things you need to document with that. What are the expenses associated with Creighton having a business? Why are those expenses you need to be mindful off, making sure that you pay your bills on time, so make sure that you are creating that expense budget that you can pay attention to How much money is going out of the business? Also, then let's break it down even more. What are the payroll labor? Ah, contractor will type a budget that you need tohave. You need to pay people to do the work so you want to be sure you are fully aware of what this could look like for your business. Then what kind of capital expenditure? What exactly do you need to go there and spend money on? That might be, ah, that capital investment process in the business. But you need to spend money so you might need to borrow in order to do so. What are the ramifications off your need in tohave a capital budget? How do you need to spend whatever it is? Are you going to buy? Ah, large piece of equipment? Are you going to put out a large order? What exactly does that go quite for your business? You must be mindful of this. So if you need to create a budget around that great go for it, not everyone is going to need tohave all of the types of budgets that I'm going to show you . But more than likely, definitely the 1st 1 The sales revenue expense and definitely a budget in process for payroll labor type expenses on off course cash flow you will never get away from casual casual management is one of those things that you need to be mindful out. And so, as part of the budget, you will need to create cash flow projections. So that's one of the budget that we talk about for marketing. Marketing is another key one. If you don't allocate funds for marketing, your business potentially will not do very well. The marketing aspect off off your business is a key area toe how you're going to succeed. So make sure that you have that in place. What type of special project, UH, processes. You need to be mindful off. That could cost more. So let's say you're going to go after a government contract, and it's a special strategic time contract on. You need to set aside a budget for it. So that could be a potential project, but or you're going to build your own building. What are those additional expenses that are not normal expenses that you would see so you would consider a project budget for this other types of budgets? I think about these air. Essentially, you take all of the prior ones and combine them whether you do so in a master budget that has everything related to your business, that money's coming in. Money's going, Oh, this covers every all aspects off on the budget in process, you have budgets that you could consider as flexible. Ah, one of those flexible air is that you could consider for the business for funnel budgetary process perspective. So make sure you're looking at what areas you could have more flexibility. So marketing is one key here I always go back to because this is owners need to be mindful that, um, sometimes we don't put enough into budget in, and then other times we put, ah, we overextend ourselves in that area, so make sure you're being careful with that. And then what's the cash budget, the cash budgets? Looking at the amount of cash you actually half on hand and working with a budget to keep you in line with the actual cash you have access to? All right, so you want to be clear is to making sure your monitor your bank account on what's already being paid out on paying attention to the actual cash liquidity that you have access. Then the capital budget will. I mentioned that before. Depending on what you're trying to do, you definitely will need to have a capital budget if necessary and then off course, a continuous budget. So a budget that rolls from year to year are looking at. Here are the next five years. Potential are analysed numbers. This is what you're thinking off on. Then when you look at those numbers, what what is it doing for your business model? Do you need to make changes? Where do you need to make those changes? So you couldn't know where you are There some things you need to think about in which budget would be necessary for your business. Not everyone's going to need all off them, but again, what is required for your business? 6. Session 4 - Uses of Budgets: welcome to session for off budget and made easy. In this section, we will be covering uses off budgets, so it is important that you understand how to use a budget. So we will present in this section what you need to understand about budgeting on the uses of it. So what are the uses of budget? So there's so many you want to think about what it provides. It provides an overview off what the potential revenue could be for your business, or what the potential expenses and a compere contrast as to what the indicators are for your financial health, your business, financial help. And then again, it allocates. Resource is, it will help you to determine where you need to put dollars where you need to make changes , where you need to increase where you need to decrease than off course again, a financial control process that will keep you Hopefully, you know, in alignment to meet in those financial goals you've set and then helps you to determine leverage. Points where you can a strict some in different areas or be able to top other resource is to help you with the process of building your business. So with my budget is necessary, a budget helps you to do so many different things and to keep your eyes actually on the ball is really toe Open your eyes to this is where you really are and not just Okay, Um, I'm gonna go Willy nearly doing my own thing. Not worried about what's in the bank account or connecting the dots to what you're spending and to what's coming in on leveraging over time, those things. So with die, who uses a budget? Definitely. CEOs, entrepreneurs, those owners off the business who use will needed to start a business to get that business to that next level, then a CFO. They need the financial data to make sure that things are operating A smoothie is possible , right? So if you're both of them, then you will be managing all aspects off this for the business. Of course, an accountant arm department. Or if you work with a C, p. A. These are the things that they're going to be, you know, they're going to need or we can work with you to create. So definitely make sure that your setting aside funds in your budget for this aspect off the business for the accounting, making sure that you're paying your taxes. They ensure that you are filing those tax returns accordingly and having correct financial information as you continue to work your business and then off course, any managers, any source that's works within your business that must see a budget or a specific area of the budget that is ah would impact their working relationship with the business. Beaumont's present that so make sure that the the budget is used accordingly, and then those key individuals need to connect me to be communicated. I can't say that enough communication is critical in this process, so make sure that the business is or those connected to the business are in full awareness of what you expect. What your processes are our own budget in on their their abilities to spend their ability to make decisions that would impact your business 7. Session 5 - Budgeting Stages: in session five off, but it and made easy. We will cover the budget and stages that you need to be mindful off in creating your budget . What are those stages you need to pay attention to with that? Let's go ahead and die. Then we want to define the objective. So what is the point of creating about it? What is your need for creating that budget? I can say all I want to say about creating a budget, but at the end of the day, it's all about you. What you need, So you need to define those objectives. You want to set about a timeline because at the end of the day, if you don't, you're going to waste time and you're not going to get it done. So create a budget timeline. If you're the only one putting it together, then it's all on you. If you have a team of folks, give them their share of what they're supposed to do and give them a timeline. Then you want to gather the information. A budget requires that you look at historical information, you do some research on. Then put those data that data together to help you create that budget, prepare it. You've got to go ahead and prepared. What's the point off spending all that time, pulling things together, setting old processes and all that. I'm not prepared. So go ahead, prepare the budget. And from there let's review it. You want to make sure that it's it's logical. Maybe you miss some things you might need to take some things out so depended on where you are and what needs to happen. Maybe it says close to being okay, but I can remember their numbers. Don't just simply don't over inflate your past expenses because that can be, I'm figured out. Don't overestimate your potential revenue if it's not in alignment with what the market could beer on, what your business can actually sussed een so with that, review it and then use the budget. It's pointless going through all of this. If you don't use the budget, then you want to analyze. Your results will make sure that you're looking at what you have done in comparison to what your budget said you would dio and then look at the different and what's the difference that's going to help make you make help you make better decisions or do you need to pull back on some things? So it all depends on where you are with the results. What results did you find as you did your research around? What you actually did versus what you thought you would be able to do are not do. Then what information do you need? Great. Where those goals, you've gotta set some goals. You've got to have some financial goals. Put that pining place. So stop and think off the goals that you need to have. Then how much money do you need? How much money do you have? How much money do you expect to generate? Do you need to get outside access to capital? What are those things that are critical to your business? And then what are the costs? What are those expenses that you need to think about That? Uh, well, define what your net profit looks like. What would be your girls revenue? What would be your your net profit at the end off All expenses paid out. Um, for that time period. So think off those things. And then let's talk about the outline of a budget. So outline of a budget. We're going to look at different categories. Those categories will include the income. They will include the expenses on the other areas off where we look at, Here's actual what you actually did in that time period. And then what did you budget? So we're going to look at Here is the budget. Here's what we actually did and then what's the difference? So we will see whether we were too enthusiastic about some areas or we were on the N Tuesday about certain areas. So from there you'll be able to figure out as you go, you can plug these numbers into whatever financial tool you decided to use, and it will give you that. Okay, here's what you did. Here's some waitress ways to save, um that you did not think about. And from there it ends this fashion 8. Session 6 - Gathering Information: welcome to Session six off budget and made easy. In this section, you will learn how to gather that information that's going to be needed to create the budget. Can't do a budget. We don't gather in your information. So what is entailed in this area? We want to make sure that you analyse any external information, the environment. What? What are we talking about? So you are going to need toe do some research as to what are the expenses? What's the potential income that you're going to be able to me? And then that's going to help you create the budget looking at? Are there additional? Ah increases in any type of expense that you might incur? Are there additional opportunities for you to generate revenue based on what the market is dictated? So those are things you want to think about? Then, when we look at what are the the internal processes, those internal information that you need to look at, so the within the business as a whole? What do you need to think about doing? Who do you need to go to so whether we're going to the c p A. To get some numbers or we're going to our CFO or bookkeeper. Who's that internal person or sores that you need to be connecting with to help get information then are we were looking at What are the additional staff requirements? And we say this because if you are looking at ah, growing your business, you're going to hire. You have some stuff already. What are their needs in those specific departments that they work within? What are those expenses? Water. The potential for them to help generate more revenue for the business. So if the staff requires a larger marketing budget and it's going to be spent on social media because that's where you need to go, then we might need to allocate funds for that department or that area off the business. Then we want to review whatever policies and procedures you currently have in place that might impact the budget negatively. Or you could make changes that could then positively impact the budget. So those are things to think about as you're gathering the information. When we talk about factoring in historical data, you want to make sure that you're looking at the previous financial information you have, so whether you're talking about your tax returns you're talking about, uh, any statement of cash flow balance sheet? Any financial information that you might have that can help to create the budget is and should be gathered unutilized to help create that document. Then you want to, um, look at what are the trends, those trends and patterns that's going to impact the business So you might be, ah, business that's, you know, still on a growth trajectory or you might be on in a business industry that's on the decline. So you you've got to pay attention to this kind of information to help determine revenue and help determine expenses from there. It's a good way to justify your budget when you look at the historical information. If last year or let's say, the last three years based on your tax returns, it's showing an onward upward growth trajectory. Then you could estimate that you might double what you did the last 2 to 3 years assed part of your budget in process. Whereas someone that had been no not making as much or suffering losses we could not go out and put in a budget to say okay. This year I'm going to double revenue because it might not be logical just based on the past historical information. So you make sure that your budget is viable and that you can justify what you've put in it . 9. Session 7 - Planning Your Budget: in session seven off, but it in made easy. You will go over planning your budget. You've got to plan for your budget. We can't do it. We don't make in plans and figuring out ways to make it happen. So with that, what do you need to do? The plan Ah, in that planning process to create creating that Dearborn document. So I would like you to use the following pining format the low to help you, ah, guide you through the process of creating your own budget. And this is going to be a part off the project I want you toe work on. So you're going to look at creatine off using the form that I've, um I have in the system to help you create your budget. So we want to identify what's the tasks associated with the budget. One of the resource is that's needed. So whether we're going together, the historical information, we're going to work through the forecast and processes in all this and then what are the target dates due date and then are they completed? When are they going to be completed? That kind of stuff. So you want to work through this process to help and you create, um, a timeline to getting it done. Actually gather in the information actually stopping and put in the data on paper, you know, in a spreadsheet or financial some other financial tool, and then utilizing this process to keep you on track and to get any done. It's a good way to plan for the end of the year process to get your budget ready for the next year, Then you adjusting for special circumstances. What do I mean by that? It's going to help you to list any potential issues that you might end up having. As part of your assumptions. You could identify any potential issues, and there you could then reorder the issues. What's the the big Kahuna? What's the what are those smaller ones that you might not have to worry about so much? But at the end of the day, understanding that there might be issues, it's a part of being investments, a part of understanding that no business operate well can operate. We don't have in issues, so make sure you your keep in, um, some processes in place to help you. Then you want to assess the cost off each issue. What's the financial? That dollar figure that's associated with any given one of the issues you might encounter while you're planning. So you might need to buy a larger piece of equipment that might be a $50,000 piece of equipment. Oh, are you might need to buy a printer. Whoa! Ah, printer, depending on what you needed for, might run $1000 or less. So we've gotta understand What are those issues? Do we need to re order the the importance off each issues and then figuring what's the cost associate ID and when we need to do it. So timeline, prostheses, and then you need to determine if the costs should be factored into this particular budget or left off. Do you really want to leave it off? I can't tell you yes or no, because it's your You have to develop that planet and figure out. Is that something that's necessary? Meted Any time. So if not, maybe you don't need to include it. Or maybe you do put it all together. How do you put it together after you've done your research, you've got together. You're gonna acquire all the necessary information, they're going to develop the plan. Then you're going to adopt the plan. You're going to report utilizing a process whereby you have that. And now this analytical process to help make sure that you are on track. So this is a simple process off you want, you're going to put it, do your research. Then you're going to acquire the information that you need, developed the plan and adopted. That means use it. And from there you will be able to figure out what kind off reports you need to come up with for the business. What kind of report you need to come up with for the business. 10. Session 8 - Financial Aspects of a Budget: Welcome to Session eight off budget in Made Easy. In this section, we will cover the financial aspects off a budget, the key fundamental areas that you must work through in creating that budget. And so let's dive in. We want to develop that revenue model that's going to help you create that budget. Help you understand where your money is coming from. What are those fundamental areas off creating that revenue opportunity so revenue must exceed expenses in order for the business to be profitable? Folks, please. As you are creating your budget, make sure you understand that you cannot be profitable if you don't have more revenue than expenses. Right. And so what are the sources of income you might have? You might have product sales. You might have services. You may be able to generate interests. You might be able to get income from other opportunities, so you want to make sure that you're very clear as to what your sources of income that's going to help create a steady stream of revenue for your business. Then, as we're budgeting for expenses, what do we need to look at? Payroll expenses, contract labor expenses, rent, utilities, all of these different areas are things you need to think about for your business, from operating and legal to insurance expenses. Definitely. If you're going for a loan, you need tohave. Ah, factoring loan interest payments separately from the principal accounting fees, banking fees, one of those expenses that are Africa built to your business that you need to pay attention to marketing postage dues. All of these are key areas to think about when you think off your business on the budget in process. 11. Session 9 - Financial Statements: Welcome to Session nine of creating Welcome to Session nine business, but it in made easy Welcome to Session nine Off building. Welcome to Session nine. Creating your budget In creating a budget, you must understand the financial statements you need to use to be able to create that budget. What are those key documents that you need to identify that's going to help you with developing your budget? And so here a number of documents that I think you need to think about. But before doing so, let's just make sure you understand this. Ah, budget is just a method of warring before you spend money as well as afterward by someone in the past. Okay, so with that here, what you need, here's what you need to think about. What are the revenue streams you need to think about? What revenue forecasts do you need to put in place one of the sales forecast. So between the different types off revenue options that you have? Are you selling a product service, those types of things? Then what are the expenses? We must address those, and then how do we are balance between revenue sales coming in on cash flow your expenses. What's going to be left over at the end of the month to calculate operate the business effectively. So with that, what are the cost of goods? Do you have a product that you're selling? And is there a dollar figure attached to what those products might look like? What the cost factor might be for those products? So wit not. Let's dive him revenue budget in It's vitally important that you forecast how you're going to generate money. That is the key area that determines how money comes into your business. With that. Here is the structure that I have laid out on have given you as a project toe walk through the different financials three key financials that I think you should work through to help you so determine in the revenue. Where is it coming from? So you offering a service you're selling products? Do you have government contracts? Do you have rental income, interest in earnings? Or let's say you you are getting a royalty payments. What type off opportunities do you have to generate revenue and then off course, we must a document how much money you're putting into the business on any type of loan infusion that is appropriate. As you can see here, we listed out these items on giving you a sample of what your numbers could look like. And so here's a last year's revenue are rather income. If you do not have this for your business, do not worry about it. It's You're going to start with your current year that you want to forecast and then have your actual, um, changed this last year's information toe what you actually did. And then what's the difference with that? We want to understand. Okay, how do we combine the sales forecast in process? So for looking at product or service, what are the number off? Um, what's the price points? What's the units that were selling on then? Um, what do we expect to generate per each item each service that we're offering? So when we put the two together, we're creating this type of a sales forecast process. So it's one thing Before you had a simple layout off, here's what the revenue potential would be in this part for their sales forecast. Your identify month to month what you expect to do, how many units you expect to sell per mont based on whatever your street strategy is for analysing and defining how much you think you could sell in a month. And then what are the price points? That would be ideal that folks would be able to pay you for those services or products that you're offering on. Then what would be the total revenue when you combine the units sold along with the price points and then looking at a grand total for revenue from there? We want to understand, uh, this is another form it actually how you lay out a sales forecasts. I'm giving you two examples. The prior one was where you separated the units on the actual selling price and then the actual dollar amount. Whereas in this second example, your scene where their combined together. So you're let's say you have a service package, one that you're selling on. This is the price point off $150. And then what? That would categorize to a dollar figure among for your business. So make sure that when you lay these things out, you understand what it is you're putting in because again, there's a phrase that says garbage in garbage out. So make sure that you're paying attention to the figures you're putting in on that they're not all the same. Ah, per month. So if you notice January, we have lower numbers for how many products or service that offerings that you might have, because January's often times a cold mont, depending on which country you are in. But let's say you're here in the U. S. So some businesses won't make as much money in January, where some businesses owners, this might be the key area that they're generating more revenue. So please do not do what we call in the financial world in the banking industry. Are flatlining your numbers because that could be a detriment to you potentially accessing capital. So make sure you're looking at the different numbers that's helping you to come up with the potential revenue for your business. I'm Then we want to identify one of those expense that you're going to have those whether you're going to have salary and wages taxes off course, you will never get away from taxes. So please, uh, allocate funds for pain taxes again, you are going to have some legal and accounting expenses professional on any other type off . Ah, potential expenditure capital needs that you you might have other non recurring expenses that you need to be mindful off, So this is a short form to present to you to get started on. This will be in the World Project Class project that you'll be working on two. So make sure that you understand if the if your business does not have our prior years numbers than you change this toe actual Andi, start plugging that information in and from there, make sure that you're working paying attention to your expenses. It is a logical to try to be in business and not pay attention to both revenue coming in on experiences going out. And then you combine the two D from your revenue to your expenses and combine them in a cash will projection worksheet that can then compere. Okay, what's the potential cash balance that you're going tohave at the end of the year? Uh, they're often times you're going to need to do a cash flow projection Monta month. Similar to what you saw on the sales forecast, but definitely separating revenue on the expenses in having that in that those figures and not one document to show this is what your expectations are per month that you think you'll be doing. Whether from revenue cost of goods, I make sure that you are documented the cost of goods to youth to sell that product, um, you will have the cost of labor. But again, um, make sure that you're connecting with your c p A. On any like a bookkeeper or any financial source that will be able to help you feel have a CFO within your firm. They should be able to manage this aspect. But you, as the owner must must, must be in the know when it comes to your money, because you can't let this one go and then off course, paying attention to what cost of goods could look like for your business. So when we referenced the prior sales forecasts information I took the product. Information on allocated are expected cost of goods numbers to each off those product items that was listed on the second example, um, for the sales forecasts, so make sure that you are paying attention to what this could do for your business and be mindful off any drawbacks. This is going to help open your eyes is too tiny to your marketing budget and other things that applicability to your business because at the end of the day, if you don't get savvy with this area off your business, you could fail. You don't want that, so pay attention to the number. So once again you're going to work through a revenue forecast, looking at what you could potentially earn. Looking at a sales forecast, whether you separate or combined. Perfecto examples I presented and then working through your expense and expense budget, a cash flow projection worksheet on any cost of goods that's applicable. You can have that in, um in the process to help you know where you are. So this is to help you, either. Let's say, put your glasses on so you can see clearly. So this is to see the financial picture much clearer as to how you should operate your business. It could also be taking from the profits off you driving blindfolded. If you're operating your business, we don't paying attention to this area of your business you are driving blind on. You can just imagine if you're on the highway with a blindfold or your Brian person, Heaven forbid driving. That would not be a good thing. So it's the same thing for your business. Okay? We don't want you to crash and burn. Um, we want you to succeed. So take the information that you learned here on applied to your business. 12. Session 10 Final - Monitoring Your Budget: I think about now, Please don't vote. Don't do this. Don't be a dictator in the budgeting process, All right, Let others put in their two cents feel about what their thoughts are. A road, the process to create in our budget for their department and then combining it with what you already know. All right. That's why you need the personnel that's a part of the business to help you make it happen . Don't request things from your staff or off your staff that you don't need in the budget. Why would you want to do that? That's not logical. So you go for the key financial data that you need, and I'll provide endless that you can go through and determine are these things that you actually need to help create your budget. Okay. And do not inflate your the prior year's experiences because again that can be that can be verified. Okay, whether we're auditing your banking statements for 12 months or we're looking at your tax returns or any other financial legal financial document that has been has gone through a process, those things can be analysed and see girdled. Okay, so don't inflation and I do not over insulate your budget. Can't say that enough, right? Because if you do so, especially if we're going to seek funding or need to present it anywhere else. You know, 20 Investor, you need to be mindful off this. All right, It does not look good for a business owner inflating those numbers when could be economic indicators. That's going to definitely speak to it. Not happening or you don't have the staff. There isn't enough hours in the day to make it happen that way. Sales are growing at the trajectory that you're putting them back. So pay attention to those kinds of things to help you. All right, Now you need to justify your budget. How do you do that? The budget should answer the questions. A skeptical reviewer would acts right? So someone that, like, if you were to present it to your accountant to say, Okay, pick a review off this off your budget. Is it in alignment? They more than like they're going to ask some questions that you might not want to answer. Fan goes for lending source. They're going to express, since you potentially might not be able to act toe answer. And so you want to be mindful up creating a budget that you know is answerable to the questions we might have? You're, but it should make a persuasive case for investing in you and your team. So you want other people's money? Make sure that you are putting together that budget that is going to work for all involved . Okay. It must show that you can repay the loan. It must show that you can cover the expenses included taking on that new debt. Okay, it is important also to include budget justifications, since they can be an essential be essential for surviving on artist. Okay, says the I. R s. Or you know, any sores the government walking on need to do an audit. You need to have your financial financials in order. Okay. Can't say that enough. That could jeopardize your business. And you don't want that. All right. So key. Take away points from this train in that I hope you will get creating a solid budget by using the key operational data you used to run Your business will help you make key decisions for your business. So please listen and follow through comparing your actual financial results against your budget every month and not note in the variances. The differences is extremely important. And then using your actual versus budget variances will help drive improvements on plans for the future. So I hope this training helped you as much as possible. Thank you. Now use it.