Running a business is a lot like managing your own personal finances—for it to be sustainable, you need to make sure you’re spending less than you take in. And much like managing your personal budget or your family finances, there can be lots of small but necessary expenses that add up.
But if you get business budgeting right, it can make everything else—including paying your taxes and saving for retirement—a lot easier.
A budget lets you plan and control your business expenses whether office rent or website hosting services. Even seemingly minor costs, like coffee with clients or printer paper, add up. If you’re operating outside of your means, you’ll never achieve profitability.
Here are a few expenses to account for that might go overlooked:
Which expenses you face—and how much you need to budget for them—depends heavily on your line of work. The key is to make sure you keep a handle on your expenses.
As you get used to working with your business budget, make sure that you:
Business budgeting isn’t a one-time exercise. You’ll need to keep revising and updating your budget as your business grows and your needs change.