Start Up Business Budget is key to starting your business and getting it off on the right track. I choose to go old school on this, and grab a pen, and paper, and sit down quietly and figure out just how much I will initially be Invested in my start up. I do not like surprises, so I want to minimize this by Itemizing every Item I must buy to start my business.
Here is an example of how my wife and I started our cookie and sandwich store. I knew we needed a store front and we were choosing to lease. That would be the first expense, and I had set aside $30,000 that I felt would buy everything we needed to get our store up and running. Here is my Itemized list, and how we bought everything and stayed with In our budget.
- One year Initial lease paid up front- 8,264.00 Note: I did not want to have to worry about a monthly lease payment our first year.
- Health dept license first year – $1,000 Every year after $500.00
- City business license $50.00
- Food handlers license $300.00 for both of us good for 5 years
- commercial kitchen equipment to operate $7,500
- Store layout furnishings and display cases, decor, tables, chairs, menu boards, outside signage. $7,000
- POS system to accept all credit cards $1,000 initial set up.
- Initial food purchase order to open for business $2,000
- Business Liability Insurance for the year $1,000
Total Initial Investment $28,114
That is a good overall breakdown of what it took for our Initial Investment. Be smart about putting some extra money aside also for expenses that can come up that you forgot. Write down everything, and I mean everything it is going to take to start your business. Run the numbers to see if you can financially swing the Investment. Numbers on paper do not lie.
Lastly. Having and keeping a budget to start and run your business on a monthly basis is key to success. Know your numbers, know your Inventory, and spend no money on yourself at first. The key is to invest back into your new business so you are always stocked with Inventory for all of your new customers. New businesses typically take 2 years to get known and really get a customer base and a good flow going. Always keep a business budget every week, and always know your numbers.
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