{"id":1367,"date":"2017-01-24T00:00:00","date_gmt":"2017-01-24T00:00:00","guid":{"rendered":"https:\/\/qa.simplifimoney.com\/blog\/budgeting-tools-new-small-business-owners\/"},"modified":"2024-11-18T10:23:42","modified_gmt":"2024-11-18T18:23:42","slug":"budgeting-tools-new-small-business-owners","status":"publish","type":"post","link":"https:\/\/www.quicken.com\/blog\/budgeting-tools-new-small-business-owners\/","title":{"rendered":"Budgeting Tools for New Small Business Owners"},"content":{"rendered":"\n

Budgeting for your new small business<\/a> is much the same as budgeting in your personal life in some respects, but there\u2019s one big difference: The income factor in your personal budget is usually somewhat fixed. Your business income can be limitless, on the other hand, or at least that\u2019s your goal when you start out. Making and maintaining a good business budget helps you control costs and invest in growth.<\/p>\n\n\n\n

What Are Your Business\u2019s Expenses?<\/h2>\n\n\n\n

If you haven\u2019t yet opened your doors, establishing what your expenses will be can be difficult, but it\u2019s a vitally important step. Business News Daily suggests estimating high. This will give you a little wiggle room if an expense crops up that you didn\u2019t anticipate \u2014 but you can take steps now to prevent that from happening.<\/p>\n\n\n\n

\u201cTalk to other business owners in your sector,\u201d suggests Frank Fantozzi, president and founder of Planned Financial Services in Cleveland, Ohio. \u201cFind out what to expect and what things surprised them most as new business owners. Were there expenses they didn\u2019t foresee or budget for? Learn from others\u2019 experience, then prepare a budget that includes expenses for office space, technology, travel, inventory, marketing and any other business expenses you can think of. Don\u2019t forget to include your salary or any income you plan to take from the business, as well as income taxes you may owe.\u201d<\/p>\n\n\n\n

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How Much Will Your Business Earn?<\/h2>\n\n\n\n

Next, estimate how much profit your new business is likely to earn. Be realistic, even conservative. Anticipate sales and other sources of revenue, keeping in mind that it could take you a while to generate a steady stream of income. Some months may be more lucrative than others, particularly if your new business is seasonal. Now subtract your long-term expenses from the long-term forecasted revenues. This is your profit margin. <\/p>\n\n\n\n

Your Business Budget is Ongoing<\/h2>\n\n\n\n

\u201cA budget is a living document, not once and done,\u201d Fantozzi notes. Your initial budget should forecast and guide finances for at least your first year, then adjust it or scale it back monthly based on the previous month\u2019s revenues and costs. Reallocate expenses that might improve your revenues, such as increasing marketing costs. Or take steps to collect receivables if you see that your business did pretty well but you don\u2019t actually have that money in the bank yet. <\/p>\n\n\n\n

If you did better than expected and have no reason to anticipate a downturn in future months, you can consider expanding your business, such as by relocating to a better location or giving your employees raises. Or, you can save a cushion to safeguard against unexpected and potentially catastrophic developments like the breakdown of a critical piece of equipment. <\/p>\n\n\n\n

Business budgets tend to be much more fluid than personal budgets, so you might need some help getting started and maintaining control over yours. Quicken Home and Business<\/a> software does a lot of the work for you. It categorizes your business transactions so you’ll have cash flow reports and profit and loss projections at your fingertips. <\/p>\n\n\n\n

\"Small<\/figure>\n\n\n\n

Click image to see full infographic<\/p>\n","protected":false},"excerpt":{"rendered":"

Budgeting for your new small business is much the same as budgeting in your personal life in some respects, but there\u2019s one big difference: The income factor in your personal budget is usually somewhat fixed. Your business income can be limitless, on the other hand, or at least that\u2019s your goal when you start out. Making and maintaining a good business budget helps you control costs and invest in growth.<\/p>\n","protected":false},"author":59,"featured_media":1369,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_seopress_robots_primary_cat":"","_seopress_titles_title":"Budgeting Tools for New Small Business Owners","_seopress_titles_desc":"If you haven\u2019t yet opened your doors, establishing what your expenses will be can be difficult, but it\u2019s a vitally important step.","_seopress_robots_index":"","inline_featured_image":false,"footnotes":""},"categories":[63],"tags":[],"class_list":["post-1367","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-jobs-career"],"acf":[],"jetpack_featured_media_url":"https:\/\/www.quicken.com\/blog\/wp-content\/uploads\/2022\/08\/Budgeting-Tools-for-New-Small-Business-Owners-60.jpg","_links":{"self":[{"href":"https:\/\/www.quicken.com\/blog\/wp-json\/wp\/v2\/posts\/1367","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.quicken.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.quicken.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.quicken.com\/blog\/wp-json\/wp\/v2\/users\/59"}],"replies":[{"embeddable":true,"href":"https:\/\/www.quicken.com\/blog\/wp-json\/wp\/v2\/comments?post=1367"}],"version-history":[{"count":2,"href":"https:\/\/www.quicken.com\/blog\/wp-json\/wp\/v2\/posts\/1367\/revisions"}],"predecessor-version":[{"id":4640,"href":"https:\/\/www.quicken.com\/blog\/wp-json\/wp\/v2\/posts\/1367\/revisions\/4640"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.quicken.com\/blog\/wp-json\/wp\/v2\/media\/1369"}],"wp:attachment":[{"href":"https:\/\/www.quicken.com\/blog\/wp-json\/wp\/v2\/media?parent=1367"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.quicken.com\/blog\/wp-json\/wp\/v2\/categories?post=1367"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.quicken.com\/blog\/wp-json\/wp\/v2\/tags?post=1367"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}