You have to assume and Create Master Budget a. How many items, units, or services do you
You have to assume and Create Master Budget
a. How many items, units, or services do you expect to sell? How much revenue will this produce?
b. What are the costs that you expect to incur? Include things like rent, supplies, insurance, marketing, etc. You will have time to refine these numbers, so rough estimates are OK.
i. Be specific and think about the feasibility of your assumptions. I.e. if you plan to sell 1,000 items in year 1 you would need to purchase the raw materials to make that many!
c. How will you account for everything? Will you use QuickBooks? Are you going to do it by hand?
d. Be sure to include the expected start-up costs!
e. It is Ok to make assumptions. Just be sure to include substation for all of your assumptions!
2. Does your budget make sense? What is your breakeven? Do you need to make some adjustments to make your plan work?
3. Using your assumptions start the process of putting together a Master Budget.
a. At a minimum you need to include an income statement and balance sheet.
b. Your Budget should cover 5 years.
c. Be as specific and detailed as possible.