.png){kind=small}
Introduction:
Hello everybody! Rodrigo Gomes here back with the Youth Sports Management Academy. Today, I want to talk about a crucial topic that forms the first pillar of our plan to help you become a well-managed youth sports organization: budgeting. Many youth sports organizations struggle due to a lack of understanding of how much their programs should cost and the expenses involved in running them. This often leads to financial losses. In this tutorial, I will provide a step-by-step guide on using a simple budget template to better manage your youth sports organization.
Section 1: The Importance of Budgeting
When it comes to running a successful youth sports organization, budgeting plays a vital role. It allows you to understand the financial aspects of your programs, including expenses and revenue. With a well-planned budget, you can allocate resources effectively, ensure financial stability, and make informed decisions.
Section 2: Accessing the Budget Template
To get started, you will need a Google Drive account. If you don't have one, you can download the template in Microsoft Excel format. However, some compatibility issues may arise, so it's recommended to use Google Sheets whenever possible. Once you have access to the template, make a copy for yourself by following the instructions provided.
Section 3: Setting Up the Basic Information
Begin by filling in the basic information at the top of the budget template. Include the name of your program, session configuration, start date, and start time. These details will provide a clear context for your budgeting process.
Section 4: Understanding the Budget Template
The budget template consists of different sections, each representing an essential aspect of your youth sports organization's finances. The areas marked in white are editable, while the blue and red sections contain formulas that assist you in calculating costs.
Section 5: Forecasting Program Costs
In this section, you will forecast the number of players at discounted and regular prices. Consider factors such as early bird fees or discounts for registering early. Input the number of players, the rate per hour, and the hours the program will run to calculate the program cost. Breaking down costs on an hourly basis helps you understand the overall expenses associated with running the program.
Section 6: Projecting Expenses
Forecasting your expenses accurately is crucial for budgeting effectively. Identify the key expenses associated with your program, such as court rental, lead coaches, and other miscellaneous costs. Input the number of players, rate per hour for court rental, and hours of operation to calculate court-related expenses. Repeat this process for other expenses and track them separately.
Section 7: Calculating Revenue and Net Budget
Now that you have projected both program costs and expenses, it's time to calculate the revenue and net budget. The revenue is determined by subtracting the expenses from the program costs. The net budget indicates the percentage of revenue generated after deducting expenses. Ideally, aim for a net budget of 40% or higher for a healthy financial outcome.
Section 8: Making Adjustments
In this section, learn how adjusting variables can impact your budget. Consider scenarios where you lower the rate per hour or change other parameters. Evaluate the resulting net budget to understand how changes in pricing or program specifics affect your organization's financial health.
Section 9: Entering Actual Quantities
To evaluate your budget's accuracy, compare your projected quantities to the actual quantities. Input the actual numbers in the respective sections and observe the changes in the budget versus the actual calculations. This exercise helps you identify any discrepancies and fine-tune your budgeting process.
Section 10: Payroll Features
If you have a team of coaches and assistants, the budget template offers a payroll feature. Using this feature, input the number of hours and respective rates per hour for each role. This information will then be automatically reflected in the budget section, allowing for easy reference and communication with your bookkeeper or payment personnel.
Conclusion:
By utilizing a simple budget template, you can take significant steps towards becoming a well-managed youth sports organization. Budgeting helps you understand the financial aspects of your programs, make accurate projections, and avoid financial instability. Remember, proper tracking of expenses and income, along with a healthy net budget, allows you to plan better, enhance marketing efforts, and ultimately achieve greater success. Stay committed to accurate forecasting and regular budget monitoring to ensure the financial health of your organization.
We hope this tutorial has provided you with valuable insights and practical guidance for implementing budgeting practices in your youth sports organization. For more resources and helpful tips, stay tuned for our next post.
See you next time!
Comments