Setting your financial goals
As you create a budget, consider including both your personal and business goals.
Do you want to purchase a food truck? Open a restaurant? Or quit your job?
Having clear goals and understanding the financial needs associated with them can help you organize your next steps. So, think about your financial goals. What is something you want to accomplish in the short-term (within a year)? What about in the next 3 years? years) And what long-term goals do you have (5+ years)? Once you have listed these goals, consider how much money you will need to accomplish each of them.
Creating a budget
In this section we will consider two types of business expenses: one-time and recurring.
One-time expenses are the initial costs to launch your business, such as buying equipment, paying for permits, or building a website. Recurring expenses are things you have to pay monthly such as supplies, utility bills, rent, and employee salaries.
To create a business budget consider the following:
- What are your one-time expenses? Consider things such as: a down payment for a new storefront, a food truck, or equipment purchases.
- What are your monthly expenses? Consider things such as: Rent, utilities, and employee salaries.
- How much money are you ready to invest? How much will you need to finance?
Consider creating a personal budget to help you manage your finances. This is especially important if your new business will be your main source of income.