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Budget planning for businesses

Updated: Mar 3, 2023

The budget is defined as an estimate of income and expenditure for a set period of time. The ideal budget of a business will allow you to cover your expenses and give you a profit.

in order to decide on the budget needed for a business, it is important to take into consideration both the incomes (what you get from selling or external support) and outcomes (what you spend on for creating your products or services).


Outcomes are the costs needed in order to be able to produce a product or offer a service. The types of outcomes are totally dependable on the type of activity you do and its requirements. A general list would include:

Materials and goods

  • Needed raw materials

  • Other materials: gas, spare parts, stationary, consumables, etc

Third parties services

  • Rent, utilities, telecommunication, security, waste collection, etc

  • Insurance, maintenance and repairing, transportation, accommodation, etc

  • Publicity, consultancy, etc

Human resources

  • Salaries and taxes

  • Meal tickets and other benefits

  • Recruiting

  • Professional training

Relation with banks

  • Current bank services

  • Differences from exchange rates, interests, etc

Relation with the authorities

  • Different type of taxes on means of transportation, terrains, buildings, etc

  • Current income or sales taxes

Exploitation costs

  • Amortization

Exceptional costs

  • Calamities, force majeur

In order to obtain profit, the outcomes should be smaller than the incomes. When establishing the price of your product or service, take into account all the expenses you have to create it (utilities, rent, salaries, materials, etc.) which leads us now to the incomes you can have from your business.


The outcomes of a business consist of the money you can obtain by selling your products or services, from other types of financial activities or grants alike. Likewise for the outcomes, the incomes depend on the type of business you have, and a general list of them could be:

Current activity

  • The output of your business (what you sell)

Financial activity

  • Exchange rates differences, bank interests, bank deposits, etc.

Third party financing

  • Grants, subventions, subsidies, etc.

  • Bank credits, loans, etc.

Try to make your personal budget first and see how your financial planning goes. It will make it easier for you to understand the process!

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