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Seven steps to quickly create an effective 2015 sales budget that will jump-start your company's financial growth

by , 12 January 2015
When it comes to creating a sales budget, your first step is preparation.

If you're an existing business, you must collect all your inventory and accounting records for the past year to help you predict what the future might hold.

But, if you just started your business, or you're launching a new product, it's a bit harder.

You can use industry markers for your budget by studying other companies' financial reports. In this case, you can also research your type of business on the Internet and see what trends or patterns they follow. Talk to business owners in the same line of business. Or join a networking group in your area or start reading local entrepreneurial publications.

But you can't just throw your sales budget together once you have this information.

You first have to consider a few key factors...

Here are five factors you must think about when you create your sales budget

Your sales budget's the most difficult budget to prepare. This is because there are internal and external factors that play an important role when you prepare your budget.
Internal factors are within your control. For example, you can control advertising or marketing expenses. But external factors are completely outside of your control. These include:
  1. Customer trends and demands;
  2. Seasonal changes and demands;
  3. Economic factors;
  4. Government factors; and
  5. Competition in the market.
This might sound like a lot to think about and it can be intimidating.
That's why I'm going to show you how to use them to prepare your sales budget in just seven steps.
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We have professional experts that make it easier than ever for you to create all the necessary budgets you need to have in place.

The Master Budget Series is the toolkit for anyone who works with budgets. Thanks to:
  • 10 budget templates you can customise for your business;
  • 10 different types of budgets and how to create each; and
  • How all 10 budgets interlink and work together with the final guidance of experts with years of experience and practical examples, the preparation of a budgeted income statement is now much easier!

Create your sales budget in just seven steps

Step 1: Open your Excel spreadsheet for your budget. Decide if you want a monthly or quarterly budget. Put the periods into the spreadsheet.
Step 2: Determine the selling price per unit of your product. Then work out the number of units you sold to reach your current turnover.
Your selling price should be market related. You must also add the cost price per product plus a gross profit percentage. Check out the Master Budget Series to find out how to do this calculation.
Step 3: Look at the predictions you normally make for your company's sales. Take into account seasonal changes and buyer history for the period you're budgeting for.
Step 5: If you have more than one product, you'll need to prepare a sales budget per product.
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Step 6: Include clear descriptions in your sales budget so everyone understands the process and flow of your sales budget.
Step 7: Compare the actual sales results with the sales budget and see if they differ. If your actual results are very different from what you originally budgeted, adjust it.
To get more details on all of these steps, check out the Master Budget Series. It also contains a template to help you complete your sales budget easily. 

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