How To Prepare a Budget Proposal

Preparing budget

Creating a budget proposal is a very important step in acquiring the necessary funding from your financiers for a particular venture you have in mind. No investor of financier will release funds until they see a realistic budget proposal. A budget proposal is a realistic cost and revenue analysis that provides the path to a particular goal interpreted in numbers. At the same time, the budget will ensure that you will be accountable to your funders. If you plan to submit a venture or project proposal to your potential investors or financiers, then you will need a realistic and well prepared budget incorporated into the actual proposal to give it a fighting chance in getting approved. Some budget proposals are prepared in a complex way. However, investors only care about the bottom line and realistic goals proposed. In this case, it is pretty easy for you to prepare a simple budget proposal that you can integrate into your total venture or project proposal.

  1. Use a spreadsheet application. The best way to organize your budget is by using a spreadsheet application like Microsoft Excel. This application will allow you plot and organize the numbers easily. Plotting everything down on a spreadsheet will make it easier for your potential investors to read.
  2. List the expenses. When creating your budget, the first thing you should plot down are the projected expenses. In one column, you will need to list down all the expenses the venture or project will incur for the year or its duration. Once you have listed all the expenses down, in the next column, enter the amounts of each item. At the end, total all the expenses. Highlight the total with a color to ensure that it will easily be seen.
  3. List the revenue streams. Once you are done with the expenses, list down all the potential revenue streams for the project. Same as with the expenses list, label all the revenue streams in the first column and right down the projected amount on the second column. If you need to detail how you came to a particular amount, place notes or reference the numbers to the written explanation located in your overall proposal. As soon as you have listed everything down, total all the revenue amounts and highlight it in a different color than your total expenses. If your budget is for a non-profit project, then you will not need to include this section in your budget proposal.
  4. Balance the budget. If your budget proposal is for a project to develop profit, then you will need to balance the budget. It is important that your total projected revenue can cover the total projected expenses. No investor will release funds if there are no returns. At the bottom of the spreadsheet, enter the total expenses in one row and the total revenue on the row below it. On the third row below the total revenue, label it as “net revenue”. Subtract the total expenses from the total revenue. Enter the amount in the “net revenue” row. This will serve as your revenue after all the expenses. If the return is good and realistic, then it will increase the chances of the project getting approved.

Preparing a realistic budget proposal that will provide the numbers of the overall project or venture proposal you will be submitting will need a lot of research and study. Make sure that your numbers stand scrutiny. If possible, be conservative on the numbers to ensure that the funds will cover what the project needs.


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