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Basics to building a Startup Budget
This article is concise and to the point for anyone looking to start a budget. Here are steps to creating your budget and using it to determine how much you need.
- Don’t overthink it. The budget is a best guess and should not take hours to complete.
- Forget about revenue, even if you have some. Revenue will help to soften the “Oh, shit, I forgot …” or the “I didn’t think [fill in the blank] would cost so much!”
- Create a worksheet with three columns labeled: Item, Monthly Cost, and Yearly Cost.
- Quickly add everything you can to the items list. If you haven’t added a new item in 5 minutes, stop!
- Find the costs of those items. If they are monthly, calculate the yearly fee. If Yearly, calculate the monthly.
- Calculate the total of the Monthly and Yearly columns.
- DONE! You now have the money you need to start with and a list of what to spend it on.
Bonus advice: People will say what about this, and you forgot X, Y, and Z. Remember these items are all what is important to them, not you.
Your journey into budgeting has just begun, and you will grow this budget as priorities change. Keep these steps in mind, and you will cover 95% of what is essential in the shortest time possible.
Primer items:
Subscriptions, hiring, hosting, legal, accounting.
Thank you for taking the time to read this article, and don’t forget to follow me here on Medium.com (It’s Free).
Other articles:
Words to live by: https://yackoconsulting.com/words-to-live-by-f0864b4643f9
