Many value-added business venture budget expected revenues and expenses. In this section describe your budget projections and the budget procedures you used. The assumptions used in computing these estimates should be also be described. Identify expected price per unit along with direct production expenses and profit margin.
Use the points below to help you prepare this section.
- Operations Budgeting – Budgets for production, processing, distribution/transportation, marketing, entire supply chain.
- Volume-Cost-Profit Analysis – Analysis for computing the volume of sales needed to break-even.
- Capital Budgeting – Analyzing investment decisions through Net Present Value and Internal Rate of Return.
- Cash-Flow Budgeting – Projecting the expected sources and uses of cash during various time periods.
More information is available on Budgeting.
More information is available on Cash-Flow Budgeting.