Session 7: Budgeting & Financial Planning

🔍 Overview

This session is all about understanding the financial engine behind your business. Participants will learn how to create budgets, forecast future revenues and expenses, and ensure financial sustainability. We’ll cover the fundamentals of financial planning to help you make confident, data-driven decisions as you grow.

🧠 Learning Objectives

• Understand Budgeting Basics: Learn how to track fixed and variable costs.
• Create a Simple Operating Budget: Identify monthly revenue goals and expenses.
• Forecast for Growth: Project income and costs over 12 months using realistic assumptions.
• Align Financial Strategy with Business Goals: Ensure your financial plan supports your growth and funding needs.

📝 Pre-Session Assignments

1. Review Session 7 PowerPoint Presentation
2. Complete Session 7 Worksheets/Assessments
3. Prepare a draft list of startup and monthly operating costs (materials, marketing, utilities, services, etc.)

📄 Business Plan Focus

This session supports the completion of your Financial Plan section of the business plan:

• Startup Budget: One-time costs to launch your business.
• Operating Budget: Monthly income and expense projections.
• 12-Month Financial Forecast: Revenue and cost outlook for the first year.
• Break-Even Analysis (optional but encouraged): When will you cover your costs and begin making a profit?

📚 Additional Resources

• Free Business Budget Template – SCORE
• Finding Your Breakeven
• Calculating Breakeven Video

GET INSPIRED BY ANOTHER FOUNDER’S STORY!

In this episode of How I Built This, Jon Stein discusses how he founded Betterment, a platform aimed at simplifying financial planning and investment for individuals. Stein’s journey underscores the importance of clear financial strategies and the challenges of introducing innovative budgeting tools in a traditional industry. His insights provide valuable lessons on the significance of financial planning and the impact of technology on personal finance.

LISTEN NOW!