Next, estimate how much profit your new business is likely to earn.
Don’t forget to include your salary or any income you plan to take from the business, as well as income taxes you may owe.” Were there expenses they didn’t foresee or budget for? Learn from others’ experience, then prepare a budget that includes expenses for office space, technology, travel, inventory, marketing and any other business expenses you can think of. “Find out what to expect and what things surprised them most as new business owners. “Talk to other business owners in your sector,” suggests Frank Fantozzi, president and founder of Planned Financial Services in Cleveland, Ohio. This will give you a little wiggle room if an expense crops up that you didn’t anticipate - but you can take steps now to prevent that from happening. Business News Daily suggests estimating high. If you haven’t yet opened your doors, establishing what your expenses will be can be difficult, but it’s a vitally important step. Making and maintaining a good business budget helps you control costs and invest in growth. Your business income can be limitless, on the other hand, or at least that’s your goal when you start out. Budgeting for your new small business is much the same as budgeting in your personal life in some respects, but there’s one big difference: The income factor in your personal budget is usually somewhat fixed.
