This part of the budget shows the products in units that will generate revenue from the enterprise such as eggs, spent fowl, or for broilers, pounds produced. The first part is referred to as income or receipts. Enterprise Budgets ComponentsĪn enterprise budget can be broken into three main components. This information is helpful in future projections and years. You will see where your estimations may have varied from what actually happened. Just because your neighbor is selling a product at a certain price does not guarantee that you will be profitable at the same price.Ĭreating enterprise budgets with actual numbers when the flock is spent or slaughtered, will provide an excellent tool,for analysis. If you do not know your costs of production, it is impossible to know what price you need to charge for your product. Perhaps most importantly, utilizing an enterprise budget will enable you to know your costs of production. Use of a budget also enables you to put your plans into fileable form that you can reference later to identify the areas where you may have over or underestimated costs or income. Focusing and refining your production plan to identify potential hidden costs that may have otherwise been forgotten until it is too late. This is cheaper to do on paper with a budget than after you already have birds at home, allowing you to use the budget to create a roadmap for your production. One is that it enables us to create simulations to show potential scenarios and outcomes of the poultry enterprise. Why create an enterprise budget? Use of an enterprise budget has several benefits. No matter what your scale, knowing your costs and potential income will be valuable tools in making future decisions.

Creating a budget can be a valuable experience not only for folks who are raising poultry for profit, but also those who are raising poultry as a hobby.

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