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An operating budget is a detailed projection of all the income and expenses your startup expects to incur during a specific period, typically a fiscal year. It serves as a financial plan that guides your business operations.
The operating budget includes both your revenues (from sales, investments, and other income) and your expenses (such as salaries, rent, marketing costs, etc.). By creating an operating budget, you can plan for the future, set financial targets, and measure your company's performance over time. It's a valuable tool for managing your cash flow, making informed business decisions, and ensuring your startup's financial health. Regularly comparing actual results to the budget can also help you spot potential issues and adjust your plans as needed.
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