On Monday we had Where’s the Money, Honey? And we’re betting you thought that was that on the subject. Problem is, dealing with money in business never ends. There’s budgets, taxes, and, did we say taxes?

Determining how much it will take

How do you know how much money you’ll need to start up? Easy. Draft a budget. Okay … maybe not so easy, but you’ve got to start somewhere. Fire up your spreadsheet software of choice and start crunching numbers. It might not be a pleasant chore, but it’s a necessary one.

Start by making yet another list

• Target salary (be realistic)
• Rent, or house payment (or percentage)
• Auto expenses (include petrol and upkeep)
• Furniture payment or rental
• Accounting fees
• Insurance
• Legal fees
• Taxes
• Loan payments
• Bank charges
• Computer payments
• Software and upgrades
• Dues and subscriptions
• Reference books
• Internet charges
• Marketing expenses
• Office supplies
• Postage
• Telephone
• Utilities
• Travel

Digital spreadsheets enable you to play with numbers. They also force you to take a realistic view of your situation.

It’s a good idea to draft pro-forma (projected) budgets for three and five years. In that mix goes projected revenue and additional expenses.

If you are not confident in your abilities when it comes to business accounting, one way to improve is by taking a short course at your local college, government funded business start-up group, or Chamber of Commerce. If you learn best on your own, check out what’s available at your local bookstore, or at an online bookstore such as amazon.com.

The Internet has hundreds of online courses on offer. Some free, some for a small fee. Although we don’t have the time now, we’ll get into those at a later time. Promise.

Next up, the BoDo team, visiting authors and guests will share how they’ve handled the money aspects of running a design business.

Until then,
The BoDo Team
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