What Experts Say About Funding Your New Business
December 23, 2022
Best advice for businesses to determine the amount of funding they will need
“When launching a business, estimating your start-up costs is equally as important as projecting your cash flow. These costs should include both one-time expenses, like incorporating your business, and ongoing costs, like utilities. You’ll also want to consider essential expenses (e.g., employee salaries) versus optional ones (e.g., graphic design or writing services). Once you’ve determined your start-up costs, calculate your cash flow because your business can be profitable but still lose cash through spending that doesn’t show up on your profit and loss statement. When it’s done correctly, a cash flow forecast will help you prepare ahead of time to account for seasonal lulls in business or anticipated periods of low revenue. This small business budgeting template helps quickly and easily determine the amount of money you’ll need to get your business off the ground — and provide a basis for comparison once you’re up and running.”
This article originally appeared on porch.com. Read the full article here.