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Your Budget

Dave Schaaf
Dave Schaaf

Your business plan should include a budget to give you an idea of how much money you are able to spend on different parts of your business. This can be based on what you have saved to start your business as well as the revenue you are projecting your business will bring in.

If you believe you will do two transactions per month and net $6,000 on each, you may have a $12,000 monthly budget. Out of that revenue you will need to pay things like your phone bill, the wages of any employees, and marketing so you can do more transactions next month. You might also want to put money aside to branch into rehabs or attend training. Anything left over is your profit, but leave yourself a cushion so you can keep things going in case one of your transactions next month falls through.

At a minimum you should have a budget for daily operational expenses and for marketing, and the more you can invest in marketing, the more likely it is that your business will grow.

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