Small business budgets are forward estimates constructed on the basis of a business plan. The business plan is based on performance objectives including estimates of assets, income, outgoings, acquisitions, and intended business projects. Each aspect of the business plan is addressed and quantified in the small business budget, which provides a raw figure for operational and further planning purposes.
For example, these are the broad business plan figures for several categories used for the budget:
| Estimated sales: |
10,000 |
| Cash assets: |
10,000 |
| Amounts payable |
2,000 |
| Outgoings: |
5,000 |
| Acquisitions: |
5,000 |
| Balance |
12,000 |
As you can see the business plan provides for spare cash left over after acquisitions and outgoings. The budget is based on specific figures for each area of the business plan which are used as the operational figures for conduct of business. |
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Business Letters 
