Prepare a zero-base budget for a small department or unit. Make sure that you use a cover page and page numbers. This assignment should be no more than three pages including the cover page. How do you create a zero-based budget? The 5 steps of zero-based budgeting Start. Begin at ground zero. … Evaluate. Evaluate every cost area. … Justify. Account for all components of the budget. … Streamline. Determine what activities should be performed and how. … Execute. Roll out comprehensive planning and execution processes.