Skip to main content

Set Financial Goals: Budgeting For Your Business Operations - Brian Tracy

Financial Goals- Top Line- Business Operations One of the most important skills of the entrepreneur is the ability to prepare budgets and accurate financial forecasts for their business. Your ability to set financial goals for sales, expenses, and profits is a true measure of your ability to succeed in your business operations.


Visual Description of Business Operations


The purpose of the budget is to give you a visual description of the expected financial results of your business operations . The budget should cover 12-24 months of business operations. You can start with the paper spreadsheets that you fill out with a pencil. You can use computer programs like Excel that enable you to change numbers quickly. You should work out a complete budget before beginning business operations. You should review, revise and update your budgets and financial goals for the next twelve months, each month.


Four Major Numbers


A basic business budget contains four major numbers: Projected sales and revenue; projected total costs of achieving that level of sales and revenue; the profit or loss from operations based on the two numbers above; the cumulative top line and losses on a month to month basis.


Top Line


The first and most important number is the top line —the estimated sales for the month. This number will be the result of a complete analysis of your marketing and sales activities. Your ability to project this number with accuracy is a key measure of your talent as a businessperson. You should have three different numbers for this first top line: High sales estimate; medium sales estimate; low sales estimate. The key rule is that your business should be profitable even if your low sales estimate turns out to be incorrect. Your sales and revenue projections should be based on experience, market analysis and research.


All Costs


In the second part of your budget, you include all the costs of operation involved in producing and delivering the product or service to the customer. Include all the costs of purchasing or producing the product or service. Include all costs of sales and marketing and operation of your business. Include all fixed, variable and semi-variable costs of business operation. Your final number should include 100% of all out-of-pocket expenses necessary to achieve your estimated sales revenues.


Financial Goals: Total Profit or Loss


The third major number is the total profit or loss from operation for that month. There will sometimes be months of the year where your business loses money. In a new business start-up, the first few months will usually show losses. It is the general sales and profit trends that are most important.


Cumulative Profits or Losses


The final number is the cumulative profits or losses of the company over a period of months. Profits and losses are added together each month to get a total. These totals tell you when your business will break even and begin earning a profit. The total losses will tell you how much money you will have to borrow or provide to the business before it is profitable. You will require this business budget to borrow money from any bank or lending institution. An accurate business budget tells you, and others, you should create a budget for each one.


Thank you for reading this article about financial goals and budgeting for your business operations. Please share and comment below!



Topics included in this article include


Business Operations


Financial Goals


Top Line








via Brian Tracy's Blog http://feedproxy.google.com/~r/BrianTracysBlog/~3/MuuE-BOXk8o/
Labels:

Comments

Post a Comment

Popular posts from this blog

lynda - Jane Wurwand, Founder of Dermalogica, this week on Glambition Radio

Jane Wurwand is not only the founder of the #1 brand of skin care in the world, but she’s also changing women’s lives on a global level . I’m thrilled to have her as my guest on today’s episode of Glambition Radio . Jane (originally from the UK) and her husband launched their business back in 1983 in Marina del Rey, CA with $14,000, no bank loans and no investors. Today, Dermalogica boasts sales of more than $250,000 million a year and is sold in 86 countries around the world! It’s a true rags-to-riches story, and she tells all in our interview . What many people may not know about Jane is that she is also fighting to empower women all over the world. She founded FITE , Financial Independence Through Entrepreneurship, which invests in local grassroots initiatives to help women and girls become leaders . To date, her FITE program has helped fund more than 40,000 loans for women to start or grow businesses in over 65 countries! (Visit JoinFITE.org to see how you can get involved.) O
Post a Comment
Read more

SMART Goals 101: Goal Setting Examples, Templates, and Tips - Brian Tracy

I think you’ll agree with me when I say: We’ve all heard that SMART goals are important . But a lot of people are left with questions about them, for example: What exactly are they? How do we use them correctly? Are they really contributing to your success? Here’s the deal: When it comes to achieving success, one of the most important steps that you can take is setting good goals. It is also important to recognize, though, that not all goals are created equal. In this article, we’ll take a look at a special class of goals called SMART goals and how you can use them to heighten your chances of success. FREE SUCCESS TOOL: Brian Tracy’s 14-Step-Goal-Setting Guide What is a Goal? A goal can be any objective that you set for yourself and push yourself to achieve. Sometimes that goal may be small (like waking up an hour earlier than you normally do) and sometimes it may be larger (like earning a promotion). But here’s the kicker: While having goals of all kinds is almost
Post a Comment
Read more

bosanchez - The Bias of Fathers

One day, I was at a Christmas party. And parents were forcing their small kids to sing, bribing them with lollipops to banana splits to doll houses to Boracay vacations. One father — a friend of mine whose name I won’t divulge as it would be hazardous to my health — brought his little five-year-old daughter to the front. Because he even had a Minus One prepared, we thought, “She must really be a good singer.” So everyone clapped their hands and cheered as the music started. Then the five-year-old began to sing. Or at least made some kind of sharp noise.  But she didn’t get one key right. The cute little girl was absolutely tone deaf. From beginning to end, she sounded so awful, the experience was similar to having an endoscopy without the anesthesia. But the father was right beside me, still taking photos, still smiling from ear to ear, his eyes glued to his little daughter. He looked at me and smiled, “She may not sound right, but can you see how lovely she sways her hips?” Th
Post a Comment
Read more