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How to Plan Your Start-Up Business Budget

How to Plan Your Start-Up Business Budget

As the economy continues to improve, more and more people are growing increasingly confident in starting up their own business. The internet provides a great platform for most businesses to start for relatively low expenditure; reducing the need for physical premises which can be very costly. While it does seem a hugely attractive proposition, there are still things the potential start-up needs to plan meticulously to ensure they don’t fall at the first hurdle. Failing to do so usually means the business will fail, when in fact a stricter hold on the planned finances may mean success.

Planning is Key to Success

At the face of it, starting a new business can be a daunting prospect. As well as planning the overall business model, you need to see if you have the capital to get the idea off the ground in its infancy. While the initial outlay for a business is often relatively straight forward for people to calculate as they intuitively understand that they will need to pay for rent, desks, computers and the like, the piece that people find more difficult to model and understand is their cash flow and working capital.

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In particular, holding and ordering stock can cause real issues. When stock has to be paid for (for new businesses generally on delivery), and in what quantities it has to be ordered often impacts an early stage business’s cash flow far more than the more easily understood items such as rent, salaries and the like. Obviously if you don’t have sufficient capital to fund the period between paying for your stock and receiving the cash from your sales of that stock, then you won’t be able to continue trading. So this is critical to understand and think about before starting a business. Also, if your customers pay later than they are supposed to and you have staff that are due to be paid, do you have the capital to cover this? These are all things that, although difficult, when planned properly are very manageable issues that your business can sustain.

Free Start-Up Business Budget Planning Tool

We’ve recently had a number of people on our Excel training courses trying to build financial models to understand how a business that they are looking at might work. Given that, we have created a simple model that can be used to map out all associated costs in the start-up of a new business.

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    This business plan template is designed to allow you to quickly and simply assess approximately how much capital you need to launch your start up idea. The sheet overleaf ‘Inputs’ asks you to answer a number of straight forward questions and will then automatically generate a set of financial forecasts for your business and estimate how much capital is will require. This is shown on the ‘Outputs’ sheet.

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      It’s been designed with web based businesses in mind but can easily be used for any small business. If you’re a physical retailer or a cafe your website development and advertising costs won’t be much but equally you’ll have physical fit out costs and ongoing marketing and promotion so just use those boxes for the equivalent for your business.

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      To use the tool, click the link below, make a copy and fill in your details. It’s that easy.

      Start up business plan template supplied by Acuity Training

      Please note: these forecasts are for illustrative purposes and should not be relied upon. This financial model is general in nature and you should take appropriate specific detailed professional advice before deciding to start a business. These forecasts should not be treated as a recommendation or endorsement of your business idea and Acuity Training Limited accepts no responsibility actual or implied.

      Featured photo credit: Business man/Kim Andre Ballovarre via flickr.com

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      Last Updated on March 29, 2021

      Life Insurance: A Secure Way To Protect Your Future.

      Life Insurance: A Secure Way To Protect Your Future.

      Life is a journey full of ups and downs. No one can actually predict what might happen the next moment; there are times where the happiest moments do not even take a second to turn into the gravest. Planning for your future can help you face such unwelcomed but irrepressible situations with much ease. We all want to make every memorable event of our life more special and to cherish all those moments happily and worry less, you must financially plan your future. But no one has control over life and death. Who would wish to see his family suffer in his absence? Insurance hands over the financial jeopardy of life’s happenings to an insurance company.

      Importance of getting a life insurance

      No one has control over life and death. Nobody would like to see their family suffering in an absence, and that’s why many people recommend life insurance. A life insurance plan is one of the best ways to secure the future of your family, even against those financial troubles after an untimely demise. These plans are safe and credible, and you could trust them for your family’s better future.

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      On the other hand, a life insurance policy is a contract between a company (insurance provider) and policyholder in which the insurance provider ensures to pay a certain amount of money to the nominated beneficiary in case of the policyholder’s death during the term of the agreement. There are different types of insurance plans, and it is important for you to know the benefits of those plans such as a funeral, medical or some life expenses provided they are mentioned in the agreement.

      Choosing the right insurance plan

      If you’re about to select an insurance plan, you should consider some important factors:

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      • The time at which you start investing in a program and the number of family members you want to get insured. Obviously, a married man with two children has different needs compared to a single one. The number of persons who are dependent on an individual also varies from person to person.
      • The next thing you need to consider is you and your family needs. What are your child’s dream, your retirement plans, for how long would your dependents need financial support, any personal injury, etc. And do not forget those events or situations that will surely demand a huge sum of money.
      • The next thing one must consider is your current income. You should preferably choose a plan which you can afford.

      Now you must be having a pretty clear idea of how to choose the best plan for you. Further, you should also compare various plans offered by different companies and numerous sites available online that help will you to compare them.

      Differences between life insurance plans

      Here’s a short brief of some plan categories you can choose according to your needs:

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      • Term Insurance Plan – You have to pay once, and your nominee gets the paid money under your misfortune demise. It ensures a person for a fixed time. If you survive the policy period, you do not get your premiums back.
      • Whole Life Policy – This plan continues for your lifetime. Under this, the policyholder has to pay regular premiums, until their death.
      • Endowment Policy –  In case the individual dies during the tenure, the beneficiary gets the amount assured. If the person survives the policy tenure, they gets back the premiums paid with other investment returns along with several other benefits.
      • Money Back Policy – In this a portion of the money invested is returned to the investor at regular intervals. If you survive the insurance term you get the entire amount back; else the beneficiary receives the entire sum assured.
      • ULIPs – These are the life insurance plans that offer you future security plus wealth creation options.

      Many people do not opt for whole life policy and endowment policy because of the high amount of money you need to pay, while others may prefer to opt for these if they have a high life expectancy. Surely you will find the best one for you.

      So what are you waiting for? Plan for your future and live a happier and carefree life today.

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      Featured photo credit: aryehsampson.com via aryehsampson.com

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