Bloomberg Anywhere Remote Login Bloomberg Terminal Demo Request


Connecting decision makers to a dynamic network of information, people and ideas, Bloomberg quickly and accurately delivers business and financial information, news and insight around the world.


Financial Products

Enterprise Products


Customer Support

  • Americas

    +1 212 318 2000

  • Europe, Middle East, & Africa

    +44 20 7330 7500

  • Asia Pacific

    +65 6212 1000


Industry Products

Media Services

Follow Us

Bloomberg Customers

Start Budgeting Now

Posted by: Rod Kurtz on January 21, 2007

Think of a budget as a useful tool—a written financial plan that helps you set goals and measure progress

To start budgeting, come up with a sales revenue target. Make it your best estimate. Based on past experience, estimate your cost of goods sold (e.g., 70% of sales) and subtract it from the sales revenue to come up with your estimated gross margin.

Next, forecast variable expenses (items such as travel and commissions that vary according to the level of sales) and fixed expenses (items like taxes and rent that stay the same, regardless of sales). Subtract these expenses from your gross margin to arrive at your estimated net income (before federal taxes).

Break your annual budget into quarters, and monitor your progress every three months to detect problems and make corrections.

Ken Yancey
Washington, D.C.

Reader Comments


January 23, 2007 9:09 PM

Nice tips! They could open my mindset and sometimes I don't realize that. I knew, but I didn't realize it. By viewing these tips once again, I still have a chance to change and take action.


Post a comment



Want to improve the way you run your business? Entrepreneurs, academics, and consultants from diverse industries offer practical advice on a variety of topics each business day.

To submit a tip for consideration, first check our archive of previous tips to make sure you're not repeating a tip someone has already contributed. Then send the tip to Small Business channel contributor Michelle Dammon Loyalka. Because of the volume of material she receives, she may not respond to each individual.

BW Mall - Sponsored Links

Buy a link now!