For example, this could be the cost of a business license. After you’ve listed everything you need, categorize each item as…Įssential items are costs that you absolutely must incur to get your business up and running. Don’t just write “photography equipment.” Write down the exact cameras, lighting equipment, lenses, shoulder bags, and every other thing (small and large) you’ll need to buy. Startup expenses are not ongoing operational costs they’re the initial things you need to buy to start your business-but that you don’t anticipate spending money on forever. Step 2: Categorize your startup expenses Brain dump everything you think you’ll spend money on to start your business and put it in the spreadsheet.

Leaving a little bit of cushion is important because you always want to maintain an emergency fund. If you’re using your personal savings, don’t max it out in your budget. Only borrow what you can feasibly pay back. Remember, if you’re taking out a loan, you will have to pay it back. (Don’t worry, that’s normal.) But your budget goal will bring you back to reality.Ĭonsider the amount of money you have or can obtain. As you work through your budget, you’ll want to spend more than you can afford. The reason we set our budget goal first is to establish clear spending boundaries from the beginning. This is the total you’re willing to spend to start your business. Step 1: Set your total budget numberīefore you make your startup budget, set your budget goal. Plus, a startup budget comes in handy when you’re pitching your business to investors, applying for small business loans, and deciding whether you can afford your first employee.Ĭopy the business budget template above to your Google Drive, and follow these steps to make a startup budget you’ll actually be able to follow.

In other words, it’s where you think of everything you’ll possibly need to spend money on (like leasing a storefront or buying your domain name), along with creating a cushion for things that don’t work out (like replacing that designer who was way too into esoteric emojis). Hits you with a stick when you start to spend all your dollars.Helps you determine exactly how much cash you’ll need beyond that, and.Ensures you have enough cash flow to cover the first few months,.A startup budget is like the Yoda of your new business.

Monthly budget template