课程: Excel: Creating Business Budgets

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Understanding the business

Understanding the business - Microsoft Excel教程

课程: Excel: Creating Business Budgets

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Understanding the business

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- [Instructor] Too often, I see people attempt business budgeting without first taking the time to understand exactly what it is that the business does. Did you know that this can lead to a business budget model being developed that doesn't reflect the nature of the business's operations? We really want to avoid this. So let's talk about why it is important to first understand the business before we start building the business budget model. Simply put, we need to understand what drives the business. That is what are the bills that need to be paid? We're talking about staff costs, lease costs and that type of thing. We also need to ensure that we don't miss any key budget inputs, and this is something that happens all too frequently as it's easy to forget about ad hoc and annual expenses, such as insurance and marketing costs. We also need to understand what it is that drives revenue. That is what are the products and services that will be sold to generate income? And we also need to…

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