Definition

Seeing the profit after paying all the regular costs from running the business. It gives a clear picture of daily performance.

What to consider

  • Plan for both fixed and variable costs.
  • Review budgets frequently.
  • Adjust plans based on actual performance.

Real world scenarios

  • An entrepreneur creates a detailed monthly budget to allocate funds across marketing, operations, and staffing.
  • A small firm holds quarterly budgeting meetings to adjust forecasts.
  • A startup revises its budget based on performance reviews and market conditions.

Related terms

Entrepreneurial Finances