Before we begin, think about your financial goals. What is something you want to accomplish in the short-term (within a year)? Medium-goal (~3 years)? Long-term goal (5+ years)?
As you create a budget, consider including your personal and business goals.
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 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 on a new lease, yearly renewable permits, and equipment purchases.
- What are your monthly expenses?
- 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.