Before moving onto established businesses, it is worth noting that new companies will need to forecast their first budget based on several assumptions such as:
1. Sales forecasts
2. Competitor benchmarking
3. Expert predictions
4. Production and purchase forecasts based on the number of sales
5. Capital purchases forecast based on production
6. Human resource forecasting based on production
Once these assumptions are made the company can put together the figures for their budget. This is essentially the same process as zero-based budgeting which I will go into more detail about later.