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In the Personnel Expense Budget Section include the salaries for the following: o Office Personnel o Store Personnel o Sales People o Other personnel necessary in the operations. Ideally, you budget expenses for a quarter in the personnel expense budget. This is for the first three months of operations where you are not expecting profits to come in as yet. You may have receivables during the first few months of operations but they may need to be earmarked for other operating expenses and thus your budget needs to be sufficient for the first quarter. Even if you are budgeting for the year and is already in full operations budgeting for three months is still a good rule of thumb. If you are already comfortable with your budgeting and timing of receivables, only then can you budget two months for personnel expense budget.

One of the first things to consider is what kind of data you have to work with in your cash flow template Excel spreadsheet. Ideally, you're looking for accurate monthly data including income statement items like revenue and operating expenses and balance sheet items like equipment purchases and cash from financing activities. If you have a longer time frame you can go with quarterly periods, but annual tends to be too long. After all, how can you predict what is going to happen beyond 5 years with any accuracy unless you're valuing an annuity?

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