Published on May 13, 2015 2:30 pm, by Beck Cofrancesco
Still thinking about starting your own business? Brilliant!
To avoid free-loading off your mates every time you go out let’s have a look at how much you need to get your business going without sacrificing your social life.
There’s lots of small business advice out there, but today we’re focusing on three things you need to consider when working out your business budget (‘cause that’s what we’re good at).
First, you need a business plan.
Do you have one yet? If not, you may want to read this.
If you do have one, it’s time to revisit (see they are useful!)
Secondly, onto the budget. Work out how much you need to pay up front to get going. Break it into two areas:
1) The one-off start up costs
It will depend on the type of business you are starting but nearly every start up forks out cash for registering a company name, (getting an ABN is free), branding, PO box, insurance (public liability), etc. You may even have legal fees if you are starting a proper company structure.
2) What you need to buy to get started
What are the big ticket items you need to buy to get going? How much will it cost? List them out – examples include; machinery, merchandise, point of sale products, office equipment, ingredients etc.
Third, What are the ongoing costs?
You will likely have four major areas to consider:
1) Where you operate your business from
These costs will include rent, electricity, phone, internet, websites, parking, signage etc.
There’s no point in having an awesome new business if no one knows about it, so factor in expenses for creating a website, advertising, flyers and social Media.
You will need to pay staff, contractors and of course yourself ! (and don’t forget to factor in tax).
4) Business running costs
These include stock, supplies, etc.
There is one more thing to add to that budget, because we have only talked about all the things you need to pay for. What about all that money you are making? Where is it going to go?
Then, add how much you expect to be earning and you my friend, have the start of a great business budget.
Do it right and the reward will be worth it.
Money Brilliant Tip:
Try and keep your personal and business accounts separate. It will save you work (and the embarrassment of your accountant knowing how much you spend on shoes) when it comes to tax time and showing one set of books.
p.s If you’re really new to Start-up, make sure you check out the small business sections of Government websites. They have great FREE resources to help you work out the official money business (your tax, reporting, responsibilities etc).