Resource Overview:

When starting a new business, undoubtedly there will be a million things to consider – at times it may feel like you’re scrambling just to keep up. Amid the various components of entrepreneurship, one of the surest ways to maintain forward momentum is a sound budget. Granted, this isn’t the only component necessary for success, but harnessing an understanding of your business’s assets will allow you, with greater clarity, to confidently make those day-to-day business decisions.

Of the millions of small businesses started each year, upwards of 50% of them won’t make it past five years. According to many studies, the leading cause for this statistic is poor financial management. Many businesses neglect budgeting until years after they’ve begun – this running-wild approach often leads to the detriment of their company.

This doesn’t have to be a reality for your small business. 

With our professional budgeting template, you can prioritize your business’s finances from the onset. It takes intentionality and consistency to stay on top of your financial situation, but it doesn’t have to be difficult. Our budgeting template will act as a guide on your journey to fiscal flourishing. Here are a few things you’ll want to consider as you create your business’s budget:

  • Revenue Stream. To create a sound budget, you’ll need to list all your business’s sources of income. Remember, a budget is a plan, so you’ll need to reflect on past month’s income to effectively forecast what you’ll bring in this month. Market research can help inform future revenue during the first few months of operations.
  • Overhead Costs. Your business will incur a variety of monthly, quarterly, and annual fixed expenses such as rent, utilities, internet, website hosting, employee salaries, insurance, loan repayments, taxes, and other things. These expenses will be subtracted from your monthly revenue. These are the expenses that have to be paid no matter what, so you’ll want to be careful to not add too many.
  • Variable Costs. This is another category of expenses you’ll need to plan for. Expenses such as delivery costs, packing supplies, raw materials, commissions, credit card fees, and advertising vary from month to month and will inform when you can shift your resources. If you anticipate lower monthly income or hope to spend more on a particular expense, these variable expenses can be adjusted to allow you more wiggle room.
  • Continued Attention. Creating a budget isn’t a one-and-done activity. As your business grows and changes your budget will grow and change along with it. Plan to revisit your budget monthly, and set aside time quarterly to assess the health of your business. This time should be used for addressing unexpected expenses, forecasting future revenue, determining what can be saved, and allocating those savings for emergencies and future growth.
  • Playing the Game. In many ways, the world of business finance is a game. There are rules that must be followed and strategies that can lead to success. Find an accountant for your small business. While an accountant is an added expense, they serve as an even greater asset. Having someone in your corner who knows how to play the game will ensure you’re playing by the rules and taking the right steps toward growth.

Start Your Budgeting Journey with a Professional Template

When starting your new small business, much of your time will be spent learning and reacting. At For Fort Collins, we want you to be set up for success and to be able to make confident business decisions. With our free budgeting template, you can easily plan for your business’s needs and keep it moving in the right direction.

NOTE: To edit the budget template, you will need to activate it first. Don’t worry, it’s easy. Click “Use Template” in the upper right corner, and you’re good to go!

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