Build a Budget

Build a Budget

Follow along as we take you step-by-step through the budget-making process for a local pizza restaurant. Learn the basics of building a detailed business budget in Excel or Google Sheets just like the pros!

What You'll Learn

Spreadsheet Basics

Learn the basics of Excel and Google Sheets so that you can build dynamic budgets using formulas.

Assumptions Selection

Learn how to create a budget by making detailed assumptions about what line items will drive the sales and costs.

Variance Reporting

Learn the standard template used to report each month on how closely the business performed relative to the budget.

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Meet Your Instructor

  • Nic Barnhart

    Nic has an MBA from Wharton, worked in Finance & Analytics at ZipRecruiter, cofounded an international nonprofit to combat human trafficking, and headed operations at a health tech startup acquired by Aetna. He is Cofounder and Chief Product Officer of Pareto Labs.

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Curriculum

  • 01 Introduction

    Learn the basics of budgeting, what it is and why it is important.

  • 02 Setting Up The Model

    Understand the structure and line items that go into a budget and the importance of selecting the right assumptions that drive the revenue and expense estimates.

  • 03 Top Down: Estimating Revenue

    Create assumptions for monthly sales using high level estimates and generate formulas to determine the top line budget.

  • 04 Top Down: Estimating Cost of Goods Sold

    Create assumptions for the cost of goods sold using estimated margin percentages and generate formulas to determine the gross profit budget.

  • 05 Top Down: Estimating Operating Expenses

    Create assumptions for the operating expenses using estimated percentages of sales and generate formulas to determine the operating income budget.

  • 06 Bottom Up: Estimating Revenue

    Estimate monthly sales based on detailed inputs and assumptions about where customers come from, how many there will be, and how much they will spend.

  • 07 Bottom Up: Estimating Cost of Goods Sold

    Estimate the monthly gross profit based on detailed assumptions about the costs of producing each type of product and delivering it.

  • 08 Bottom Up: Estimating Operating Expenses

    Estimate the operating income by including detailed inputs about the anticipated costs for every overhead expense line item.

  • 09 The Variance Report

    Learn how to build a monthly report that compares the actual business performance to the budgeted performance so you can tell if you are on track.