Why is budgeting important? Goals create results!
How do you budget? There are three methods to budgeting:
1. Top-down method
2. Bottom-up method
3. Cost plus some method
Personal preference is how you should choose what method to use.
My personal favourite is the top-down method as it sets a meaningful profit target, then problem solves how to hit that target. What revenue do you need? What expenses do you need? To make sure you hit that profit target.