When thinking through your business expenses when starting a business, it is easy to think about the big costs you incur such as rent, equipment, stock or marketing.
While these expenses have the largest impact on your cashflow, remember to also include the expenses that come around month after month and are easily overlooked – things like stationery, postage, credit card processing costs and online software subscriptions.
Figuring out your sales before you’ve started your business can be tricky. One solution is to start with your monthly expenses, then work backwards to figure out how many units you need to sell to cover those expenses.
This will give you a basic breakeven point from which you can work on your sales forecasts further.
We know you're not going to become an expert in small business finance and bookkeeping overnight. Our Startup Advice section has lots of articles to help you get to grips with the fundamentals of funding and finance. Take a look at these articles for more financial insights: