Have you ever wanted a simple excel template to budget for your sports business? A budget projection that provides the basics like revenue and expense estimates so you can arrive at projected profitability? Upper Hand is pleased to offer you a customizable free sports business budget template, to help you do exactly that! Our free budget template was put together with the help of a national facility franchise and contains additional input from our customer’s feedback.
To help you get started, let’s first review 3 keys to understanding a great sports business budget!
Whether you are a sports academy, club, facility or other training business, here are three keys to understanding a great sports business budget.
1 – Always think with the end in mind
The goal is to be a successful business, which by definition is one where both business profits and personal income for the business owner and founders continue to rise. Every reputable money management advisory service, for example, Teachmepersonalfinance.com, will always tell you that budgeting is the key to financial security in both personal and professional spheres. Good budgeting techniques and practices will help you achieve both (Intuit, 2015). From simple things like getting a low business energy quote to planning for any sudden financial losses can all help your business.
2 – Why should I create and use a budget?
A budget for your business may be one of the most important accounting tools you use (Vitez, 2015). When creating any budget, you want to have a mindset where you look to underestimate your potential business income than to overestimate when it comes to budgeting.
- With a budget, you will be able to manage cash flow, which is one of the most challenging aspects of being a business owner. Learning to budget, can help you overcome this challenge (Allen, 2011). Helping you answer questions like, are you collecting money from customers long after you have paid for the services they have purchased (Intuit, 2015)?
- Without a budget or a plan, your facility or club runs the risk of spending more money than it is taking in or, conversely, not spending enough money to grow the business and compete (Curtis, 2015). Putting together a budget requires guesswork, time and focus. Our sports business budget template will provide a framework for you to budget effeciently and more importantly, it will provide the foundation to help you operate a profitable business (Weltman, 2010). Failure to have a comprehensive plan will inevitably stunt your businesses growth. For example, as your business grows you may want to consider software like sage 300 ERP to help with managing the business. But if you fail to factor in things like finances adequately, the help will be futile.
3 – What’s in a basic sports business budget?
Small business budget estimates both your revenue and expenses for a particular period of time. Helping you plan allocation of resources in the future (Intuit, 2015).
- Revenue comes from sales (e.g. registrations, lesson fees, rentals, etc), accounts receivable (e.g. future payments like team payment plans, memberships, etc), interest and other sources (Intuit, 2015).
- Expenses are what you pay out to operate your training and business. This can include any materials, rent, utilities, coach and staff payroll, marketing and other fixed (e.g. never changes) or variable (e.g. changes) costs (Intuit, 2015).
Ready to dig in?!
The hard work is not in creating a budget, but maintaining it. Especially if you are sales minded, creative, and get bored easily with Excel because you’d rather be training! To maintain an effective budget you should refer to it at regular and frequent intervals, making changes based on what you learn. And always remember, the key for any budget is being realistic in your projections of revenues. If you are facing an audit and are in need of advice, see what this Dallas based CPA firm recommends so that you can get your finances in order. A budget should not be numbers made up of hopes and wishes; it should be based on a review of revenues for the current year and what you expect to in the future (Intuit, 2015).
American Express, Scott Allen. (2011, January). Re: 5 Budgeting Ideas for Every Small Business Owner. Retrieved From: https://www.americanexpress.com/us/small-business/openforum/articles/5-budgeting-ideas-for-every-small-business-owner-scott-allen/
Intuit. (2015, September). Re: Creating a Budget for Your Small Business: The Basics. Retrieved from: http://smallbusiness.intuit.com/news/Achieving-sales-&-profitability/19283950/Creating-a-Budget-for-Your-Small-Business:-The-Basics.jsp
Investopia, Glen Curtis. (2015, September). Re: Six Steps to A Better Business Budget. Retrieved From: http://www.investopedia.com/articles/pf/08/small-business-budget.asp#ixzz3hyakyAyJ
Small Business Chronicle, Osmand Vitez. (2015, September). Re: Why Is It Important for a Business to Budget? Retrieved From: http://smallbusiness.chron.com/important-business-budget-385.html
U.S. Small Business Administration, Barbara Weltman. (2010, October). Re: Budgeting for the Coming Year. Retrieved From: https://www.sba.gov/blogs/budgeting-coming-year