Starting a small business is an exciting and challenging endeavor. One of the most terrifying parts of it is the preparation of the first monthly budget. The good news is that several experts from Forbes Coaches Council offer tips for smart budget planning.
Lin Tin of Collective Change Institute Pte. Ltd. suggests consulting peers to get an objective view or recommendation on various aspects of budgeting. Dennis Volpe of the Leadership Research Institute recommends asking experts’ opinion, determine fixed and variable costs and having at least six months of operating capital before launching the business.
Roberta Moore of The EQ-I Coach recommends hiring a CPA because they have access to ratios and percentages that are typical for certain industry budgets. Jennifer Helene of Purposeful Ventures LLC suggests confronting the fear associated with organizing a budget and expanding one’s risk tolerance.
Jonathan H. Westover of the Utah Valley University and Human Capital Innovations LLC explains that the budget should reflect the business or the owners’ priorities and values. Lori Harris of Harris Whitesell Consulting suggests keeping business and personal expenses separate to avoid including one’s activity as a business expense. Dodie Jacobi of Dodiodo Inc. reminds business owners to include their salary in the budget. He explains that if a business owner is not paying himself with a market-accurate wage plus profits, then he only has a hobby and not a business.