New Business Budgeting - CapitalQ

New Business Budgeting

Most know the importance of a budget before venturing into a new business enterprise.

But the problem is if you don’t have real experience running a business, or even if you feel you do, if you don’t have hands-on experience with the financial side of things in a business like the one you are about to enter, it is very easy to miss things.

A budget is a decision tool. It helps you decide –

  • How much capital you need to get started
  • How much working capital you will need to fund the business on an ongoing basis
  • How much you can afford to pay your staff
  • What your product or service pricing needs to be
  • Your break-even point
  • How long you can stay afloat if things aren’t working as well as you hope

So it is vital you cover every possible expense and outgoing and don’t miss a thing.

Because if you don’t get it right, then your decisions will be flawed before you even start.

Of course, we all know a budget is our best prediction of the future, so it rarely if ever will be 100% accurate. But you must do the best you can, and keep it conservative with room to move.

The most common expenses we see new business owners miss include –

  • Variable Outgoings on your Business Premises
  • Managing Agent Fees on your Business Premises Lease
  • Full Award Wage Entitlements
  • Payroll Tax
  • Fringe Benefits Tax
  • Workers Compensation Insurance
  • Income Tax (especially in the second year of operation)

But the biggest one consistently missed is …

  • Sufficient Advertising and Marketing to actually get customers or clients to your door!

More about Accounting & Tax

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What our customers say

Logo for Dr Chris Mitchell & Ms Kirsty Browne-Cooper
A significant medical invention with a potentially large international royalty stream was a great step towards financial independence, but we had no idea of how to manage the finances or tax implications.

CapitalQ guided us through the process of setting up a business including utilising Trust structures, resulting in a significant increase in the after tax financial returns from the invention.

They now care for our entire family’s tax issues and returns.

We could not be happier
Dr Chris Mitchell & Ms Kirsty Browne-Cooper

Dr Chris Mitchell & Ms Kirsty Browne-Cooper

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