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Financial Management4Biz
For Small and Home-Based Businesses
 How
well you manage the finances of your business is the cornerstone
of every successful business venture. Sound financial management
is one of the best ways for your business to remain profitable
and solvent.
Each year thousands of potentially
successful businesses fail because of poor financial management.
As a business owner, you will need to identify and implement
policies that will ensure that you will meet your financial
obligations.
To effectively manage your finances, plan a
sound, realistic budget by determining the actual amount of
money needed to open your business (startup costs) and the
amount needed to keep it open (operating costs). The first
step to building a sound financial plan is to devise a startup
budget. Your startup budget will usually include such one-time-only
costs as major equipment, utility deposits, down payments,
etc.
The 'Startup Budget' should allow
for these expenses:
(Use items
as applicable)
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supplies
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advertising/promotions
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salaries/wages
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accounting
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income
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utilities
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payroll expense
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An operating budget is prepared when you are
actually ready to open for business. The operating budget
will reflect your priorities in terms of how your spend your
money, the expenses you will incur and how you will meet those
expenses (income). Your operating budget also should include
money to cover the first three to six months of operation.
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Many
of the businesses shown
on ideas4biz can run for less than $500 to start—
money you probably already have. |
Your 'Operating Budget' should
allow for the following expenses:
(Use items as
applicable)
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personnel
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insurance
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rent
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depreciation
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loan payments
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advertising/promotions
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legal/accounting
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miscellaneous expenses
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supplies
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payroll expenses
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salaries/wages
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utilities
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dues/subscriptions/fees
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taxes
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repairs/maintenance
Continue
>>
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Financial
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