• It is presented as a list of the expected expenses and income for a given period of time.

- An exhaustive list of the FIXED EXPENSES of the business must be developed, which are independent of the volume of activity (rent, fixed part of supplies, social security fees, salaries ...)

- Next, the VARIABLE EXPENSES are determined, closely linked to the activity (Example: manufacturing materials of the product, in which the quantity will be greater the greater the production, in service companies the cost of the hour of the personnel).

- It is advisable that a young company be charged as little as possible with fixed expenses and opt for a structure of variable costs depending on the volume of the business.

- None of the items of foreseeable operating expenses should be forgotten

-The provisions for depreciation of fixed assets should be included (provided that they are amortizable).

- The financial charges derived from external financing must be calculated (in case it should be used)