Budget Business Plan

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They also have utility bills, payroll expenses, cost of goods sold expenses (raw materials), interest and tax payments.

The point is every business owner should consider these items and any other costs specifically associated with the business when setting up shop or taking over an existing business.

The goal is to figure out what an average weekly expense for overhead, utilities, labor, raw materials, etc. Based on this information, you may then be able to estimate or forecast whether you'll have enough extra money to expand the business, or to tuck away some money into savings.

On the flip side, owners may realize that in order to have three employees instead of two, the business will have to generate more in revenue each week.

Not all businesses are alike, but there are similarities.

Therefore, do some homework and peruse the internet for information about the industry, speak with local business owners, stop into the local library, and check the IRS web site to get an idea of what percentage of the revenue coming in will likely be allocated toward cost groupings.

Specifically, take a look at items that can be controlled to a large degree.

Another tip is to wait to make purchases until the start of a new billing cycle, or to take full advantage of payment terms offered by suppliers and any creditors.

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