Setting A Budget For Your Home Business
The primary reason you are working on your own home business is your desire to generate income for you and your family
. With this in mind, the importance of setting up and sticking to a home business budget can never be overemphasized.You have to have a straightforward answer to the following questions:
1. How much am I willing to risk as my one time investment as start-up cost?
These initial investments may include but are not limited to:
a. Purchase of additional hardware such as routers or even upgrading your trusty old home Personal Computer
b. Purchase of needed software
c. Opportunity Costs of foregoing what you used to do when you weren't in business yet
d. Domain name registration
e. Account Set-Up costs
2. How much can I shell out to cover monthly recurring costs?
These include but are not limited to:
a membership fees in any programs that you are part of
b. hosting fees
c. subscription fees
d. autoresponder fees
e. advertising budget
f. incremental increase in your household expenses as a result of your conducting your business at home such as electricity, extra child care, etc.
On top of all this, you have to consider your current cash flow position with regard to oustanding personal debts such as credit card or mortgage obligations. Why? Because this will compete for the limited resource you may have available at the moment.
The bottomline in setting up a budget for your home business is, know what and how much you have to spend and invest and do so wisely. Ensure that you have a "big-picture" perspective of what your home business will entail and go through the rigors of writing it on paper and summing them up. Then answer the question, " Can I afford this right now?" If your answer is negative, then defer it to later period when you have started to accumulate profits coming in.
As your own boss, dream big dreams but "never bite off more than you can chew". This simple principle applies to our home businesses as well.
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