Starting Smart

Just For You

Planning a realistic budget involves estimating both one-time start-up costs and ongoing monthly expenses. One-time costs typically include money spent on equipment, furniture and professional fees incurred in organizing the business. Ongoing monthly expenses include funds spent on rent, insurance, employee wages, accounting and legal fees, and advertising and marketing expenditures.

When preparing the first annual budget for your new business, the following one-time start-up costs should be included, as applicable: renovations and remodeling; equipment, fixtures and furniture; starting inventory and supplies; deposits, licenses and permits; legal, professional and consulting fees; utility installation; and initial advertising costs.

The following monthly expenses should also be included, as applicable: salaries and wages; rent expenses; insurance, utilities and tax payments; materials and supplies; freight and shipping expenses; advertising and marketing fees; telephone and fax charges; credit card, loan and interest payments; cleaning and maintenance costs; accounting and legal fees; automobile and transportation expenses; and unexpected miscellaneous.

Contact Sources

Let's Go Party L.L.C., 4531 Manorview Rd., Baltimore, MD 21229, (410) 624-0584.

Meg-A-Nut Inc., 1574 Buttitta Dr., Streamwood, IL 60107 (708) 837-2551.

Proudfoot Wearable Art, 1402 Bridgeport Ln., Alexandria, MN 56308, (612) 763-4904.

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This article was originally published in the September 1996 print edition of Entrepreneur with the headline: Starting Smart.

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