Many small business
ideas end up dying in the conceptual stage because the brains behind them fear
that they might not be able to raise the money to start a business, or sustain
the challenges of keeping a small company afloat. However, with enough
willpower, and thanks in part to good business coaching, other startup ideas
end up turning into a plan, and eventually, into a business. Here are some
basic budgeting tips for that business you’ve always wanted to open:
Know the Expenses
Of course, before you can start budgeting, you should know what you’ll
be paying for. There are basically two classes of startup expenses: operational
costs and capital expenditures. The former deals with things like renting or
buying office space, supplies, marketing materials, legal documentation, etc.,
while capital expenses are for business assets like cars, inventory or
equipment.
Get Estimates
Now that you know what you’ll be paying for, start estimating them by
researching how much each item usually costs. You should also get estimates for
your possible revenue (you could do a little bit of spying on your competitors’
prices for this one). Adjust your
expenses, especially on those that you’ll be paying more than once, by opting
for alternatives. For example, you could opt to buy raw materials in bulk, or invest
in a low-cost storage facility, among others.
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