If you’re running a startup, projecting and tracking your business expenditure is key to enable you to monitor and determine its profitability.
Here are a few tips you can apply to remain to stay informed of your business performance:
Start with your sales figures first, and then go further by adding other income sources you use to run your business.
Incorporating these is by far the easiest part of creating your business budget.
Many of these purchases can actually be scaled up or down depending on the state of your business, using your monthly profit. So, if your business does better than you forecasted, you can use the extra funds to increase variable spending enabling you to grow faster.
While some of these items may come up unexpectedly, like the purchase of a laptop to replace the one that crashed, others can be budgeted for months in advance, like that business retreat you’ve been eyeing, to protect your business from financial burden.
The first four steps detail the elements of a good business budget, so the last step is simply pulling it all together.
Keeping track of your startup expenditure is key to its good performance and longevity. Remember, it is the discipline in spending and tracking your expenditure that determines whether or not your business will stand the test of time.
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