Pro Forma Budget
A Budget is a necessary part in setting up a business. In our online designer baby wear, we have carefully thought about the expected revenue and the cost when our business operates. On the other hand, by increasing the revenue we can acquire profit, because of the limitation of online shopping, we can’t have much extra income except selling the goods. But we can through the income of advertisement in our website to increase our revenue.
On the other hand, we can reduce the cost in another approach to be a successful business. Cost can be separated as fixed cost, variable cost, and upfront cost. Firstly, fixed cost can be divided into seven main items: legal and professional costs cost of premise, equipment cost, utilities, staff salaries, promotion and advertising cost, and income tax. Secondly, the goods, transport cost, utilise usage, and casual staff wages are the four main variable cost items that people need to consider when operating a design online baby swear shop. Finally, the upfront cost items that we need to consider are premises, equipment, goods, promotion, legal and professional costs. According to Steve Strauss (2010), USA small business columnist, hiring freelancers is a clever approach to reduce your personal investment. This is because that if the workloads are low, employers still needs to pay for the related expenses of the full-time employees, such as healthcare.
Overall, as an online small business, not only do we need to increase the revenue, but also reduce the unnecessary expenses. As a result, our business can be carried out successfully during the financial crisis period.
On the other hand, we can reduce the cost in another approach to be a successful business. Cost can be separated as fixed cost, variable cost, and upfront cost. Firstly, fixed cost can be divided into seven main items: legal and professional costs cost of premise, equipment cost, utilities, staff salaries, promotion and advertising cost, and income tax. Secondly, the goods, transport cost, utilise usage, and casual staff wages are the four main variable cost items that people need to consider when operating a design online baby swear shop. Finally, the upfront cost items that we need to consider are premises, equipment, goods, promotion, legal and professional costs. According to Steve Strauss (2010), USA small business columnist, hiring freelancers is a clever approach to reduce your personal investment. This is because that if the workloads are low, employers still needs to pay for the related expenses of the full-time employees, such as healthcare.
Overall, as an online small business, not only do we need to increase the revenue, but also reduce the unnecessary expenses. As a result, our business can be carried out successfully during the financial crisis period.