NEVER START ANYTHING, WITHOUT DOING THIS BUDGET FIRST

Hafsah Fatimah bint Farooq — Thu, 23 Aug 2018 23:58:00 +0000

I am dead serious!

When you are going to startup, you will need a startup budget. There are many templates out there but the one I use is these budgettemplates, which I have modified myself.

This is a version I used for my first online store. The numbers are fictional but I tried to make them a little realistic.

This budget is not only for when you startup a company. This is also, for when you need to start a new project, even in your private life.

For example when remodeling your old house or when buying a new one.

This ways you will get a good overview of the money going out of the company or your pocket. It is very easy to use, you just have to plot in your numbers, and it will total it all for you.

If you do add a new line, make sure to add it in the calculation otherwise, you will get a wrong total.

Importance of budgeting

It is very important to use a budget. If you don’t you, will probably go over budget and not have any idea of how you used all that money at once.

It is also a guideline for you, to make sure that you have the money, before you start using them on other things.

Never ever

Never use money you don’t have. Unpredictable things happen all the time, like …

You didn’t sell enough

You had to buy something expensive

You bought too much on credit and don’t have money to pay

You might have a break-in

Or something else unpredictable

Bonus tip

Maybe you have heard many entrepreneurs say that you should always multiply your budget with a number of times. Some say three, others five, some even ten.

I think this is a very hard thing to specify since it depends on the type, size, etc. of your company and how cost effective you are.

I think multiplying first year’s budget with five to seven and then later years with two to three gives a good overview.

Again, it does depend on how many expenses are connected to your type of company.
After doing a startup budget, you should do an operating budget for the first three years. It will give you a goal and an overview of the company. Read more about it why and how on X2Writers blog.

Sincerely,
Hafsa Farooq
Freelance Copywriter
Digital Marketer

P.S. Want to get to know me personally? Follow me on Instagram @HafsaFarooqX2

P.P.S. Here is the link to my budget templates. Get to it, now!
No strings attached!

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THE NINE-STEP BUSINESS PLAN

Hafsah Fatimah bint Farooq — Sun, 20 Dec 2015 13:47:00 +0000

Læs den danske version her: Forretningsplanen med de ni blokke.

I have myself been in the situation where I had to write a 20 page business plan otherwise my bank wouldn’t open a business account for me. So I had to use my vacation from school on writing a 20 pages long business plan.

I got my bank account but the thing is, as soon as the bank account was opened there were already changes in my business plan. So it went straight into the trash. – I didn’t want to waste my time on writing a new one thinking I knew exactly what I was going to do with my company, so I left it alone and focused on getting my online store ready for sales.

Business Model Canvas
I don’t remember exactly when but I guess it was the next semester, one of my professors told me to check out a model called Business model Canvas. At first I was very hesitant because he is my economics professor and for me economics is an important subject but it’s differently not my strong suit. So I kind of though that the model would be like economics.

It is not. Trust me.

The model Business Canvas is a great tool to get a good picture of how the company’s different processes work together. It can be used as a goal, as the company is now and for the different ideas that the company chooses to evaluate or carry out.

It is divided up in nine different blocks and is easy for the different departments to understand the whole picture and so to say, speak the same language.

Down under you can watch the short two minutes video about how to use the model.

The Business model Canvas is developed by Alexander Osterwalder, who has managed to simplify a very complicated process. He has also lead authored the best sellers: Business model Canvas and Value proposition Design. Both books gives you the opportunity to take your business to the next level.

Using it

As explained in the video it is quite simple but using it and understanding it, has been a great progress in understanding and developing my own business. When you really get into it, you will be amazed how much you can actually learn from it.

Check it out before it’s too late.

– Hafsa

P.S. If you don’t want daily updates from my entrepreneurial journey, then don’t follow me on my new Faceebook-page Entrepreneur: Hafsa Farooq.

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startup tips Archives - Hafsah Fatimah bint Farooq

NEVER START ANYTHING, WITHOUT DOING THIS BUDGET FIRST

Importance of budgeting

Never ever

Bonus tip

THE NINE-STEP BUSINESS PLAN