The more detailed your operating budget is, the more relevant and strategic it will be for your business . To create it, we recommend taking into account the following points:
Prepare it at the end of the year
Rely on sales
Detail the activities in detail
1. Prepare it at the end of the year
Typically, the operating budget is set at the end of the year (to implement the next year) in order to anticipate the scenario that awaits your business . Set goals by quarter and by area, so finland phone data that you can make periodic reviews and project whether your company is spending and selling according to the plan .
2. Rely on sales
It all starts with the sales projection you expect for your business in that period, as this will tell you how much money you will be earning month by month, until you meet the goal . It may sound obvious to you, but understanding that you simply cannot spend more than you sell is key for a business that does not want to go into debt.
If you have a sales manager, he or she should project the number of units of products or services that your business will sell, as well as their price. In addition, having a clear idea of what your business will sell gives you the guidelines to know what you need to meet that sales quota (inputs, personnel, indirect expenses, etc.).
3. Detail the activities in detail
Start by reviewing what you have sold and spent over the past three years. This will help you validate your business's sales performance —for example, the peaks in revenue and the factors that caused them. This will give you a better idea of what you can earn next year.
In the case of expenses, it is key that you gather your team and review in detail , cost by cost, what your business needs to reach its sales goal. This includes administrative expenses, rent for your premises, marketing, supplies, logistics, etc. If your company has a manufacturing operation, the complexity of this point is greater because you will have to include more detailed costs such as raw materials, labor, electricity and maintenance, among others.