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The 'Backwards Budgeting' Method
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Instructions
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Traditional budgeting tends to focus sales being the driving force (with 6 or 7 figure revenue targets that sound fancy), then take off costs and you as a business owner 'get' to keep whatever happens to be left over.

Instead, this model begins with you budgeting your personal monthly costs/saving plans, then consider your business costs, and finally model your sales budget where you plan how many of x product/service will you sell to x number of customers.

Review the final poisiton then to get a feel for how well this budget covers all your needs (is the final figure red or green?)

I recommend making two versions a 'low goal' that perhaps simply covers the essentials, and a 'higher goal' version which is more of a stretch.

You can edit any of the cells shaded pink. Put in descriptions in Column B that more closely reflect your live/business if preferred, and of course popular with your own figures that make sense to you.
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A.Personal Monthly Costs
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MONTHLY COSTS
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REGULAR LIVING COSTS
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Rent/mortgage payments
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Utilities
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Phone/internet
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Subscriptions (streaming services, gym etc)
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Insurance policies (house, health etc)
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Groceries, coffees etc
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Toileties, clothing, sundries
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Car/transport costs (inc fuel, taxes, maintenance, parking etc)
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Leisure and entertainment (socialising, meals out, day trips etc)
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Pets (food, insurance, health etc)
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£0
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LOANS/REPAYMENTS
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Credit card commitments
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Other loans, finance arrangements etc
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£0
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SAVINGS/INVESTMENTS
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Transfers to savings/investment accounts
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Pension contributions (ignores tax effect for now)
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£0
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TOTAL MONTHLY PERSONAL COSTS£0
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ANNUAL EQUIVILENT£0
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This is how much you need to 'pay yourself' each month to fund the above activities and obligations
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Your business (plus any other sources of income) need to generate profits (after tax) of this
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EXTRAS
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Any one off purchases you wish to make? - e.g. big personal spend - home improvements, new car etc. or one off annual payments (not covered by routine savings:COST
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decorating
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car bill
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TOTAL EXTRAS£0
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ADJUSTED ANNUAL EQUIVILENT (INC EXTRAS)£0
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BRoutine Business Expenses
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Next add on the regular business costs that you incur in running your business
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Advertising and marketing
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Work premises (co working spaces, offices etc)
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Insurance
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IT - software, subscriptions, consumables (canva, office 365, web hosting etc)
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Telephone and internet (if separate from your home set up)
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Training
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Stationary, printing etc
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Work travel
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Other expenses
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TOTAL MONTH BUSINESS EXPENSES£0
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ANNUAL EQUIVILENT£0
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TOTAL ROUTINE BUSINESS/PERSONAL EXPENSES TO COVER:
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Monthly£0
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Annually£0
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CONSIDERATIONS:
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What about any one off purchases you wish to make - e.g. website development, training course, conferences etc:
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Web site
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Course
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£0
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CADJUSTED EXPENSES (to include one off planned purchases)£0
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DSALES BUDGET
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How you will make this money
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UNIT PRICENUMBER SOLDANNUAL VALUE
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REVENUE STREAM 16£0
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REVENUE STREAM 2£0
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REVENUE STREAM 3£0
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REVENUE STREAM 4£0
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REVENUE STREAM 5£0
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REVENUE STREAM 6£0
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£0