What is an operating budget?
The operating budget gives you an insight into whether your business is going to generate profits over the next period. You put in all your income and expenses that your business has in the future or that you expect to get.
You must enter the company's: revenue, variable costs, fixed costs, interest and depreciation over the next year.
Once all the costs have been deducted from the income, you will have the net profit back. This will give you an idea of whether your business can run around and where to adjust a bit. Keep in mind that there are several costs involved in starting your business, so do not give up completely on your entrepreneurial dream if the numbers are red. You can read more about how to save money in your entrepreneurship here.
Costs once a year
Remember that there will be costs that only come once every six months or annually, therefore you have to divide your costs by 6 and 12, to divide it over the whole year, that way you have a fixed amount of costs each month and you do not risk being left with a bill that you cannot pay. Read more about this under budget.
Operating budget template
Most startups struggle with the economy because the overview is hard to keep. That is why we have made an operating budget for you, so that you always have the opportunity to follow your financial development. You can find our operating template here.