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Your New Business And The Need To Budget Your Money

Jul 12, 2008
Many people are not very good at handling money. And if you are just starting a new small business you need to make sure that you handle yours very carefully. New business start-ups are usually underfunded to begin so spending a lot of money up front can ruin you before you've really had a chance to get started. And to get the funding you need you have either taken money from your savings, borrowed from friends, or maybe gotten a small business bank loan. However you managed to come up with the funds you're only going to get one solid chance to get it right!

So how do you go about taking care of your money? Three simple words budget, budget, budget. And your budget should be developed when you are tackling that top notch business plan. Because your business plan is for a start-up business it should have outlined in it how much money you have to work with. You also need to have specific details for the things you plan to spend the money on. Such as what your marketing budget is and what kind of marketing efforts you plan to pursue? Do you plan on advertising in the yellow pages or on TV? Maybe you plan on having a website built for your business to give it an online presence. Those are just some examples of the cost you will be looking at.

However you plan on spending your money you need to make sure you've put together a realistic budget. To help with this once you have decided what initiatives you plan on pursuing then you need to take the time to research who your possible vendors may be to provide you with that particular service. To continue the marketing example we'll say you want to develop a logo for your new business to help build your business brand and identity. Have you researched what companies can help you design a good business logo. Do you know what kind of costs you will face? And have you checked into both local companies and online services. Do you know who will give you what you need for the price you can afford?

Taking the time to research the services of multiple companies can save you a lot of dollars and headaches as well. You should choose at least three potential vendors for the services you need. Of course researching more than three can be good because you might find something better. But knowing before hand what the service you need will cost you will help you in your budgeting. And keep in mind your business is new and maybe you don't need all the bells and whistles. Those can always come later. Often we justify spending more than necessary by saying we want to get it right the first time but often we are just going overboard instead of focusing on our true needs.

When you are planning to start a new business you will need many products and services to help you get up and running. You need to budget for everything. From office and warehouse space, to telephone service, and the cost of business cards. The better you budget your money the more you will be able to save for the long road ahead. Because make no mistake it will be a long road and making poor financial decisions early can come back to haunt you later.
About the Author
Cash Miller is an experienced entrepreneur and speaker who has spent over a decade as a small business owner. His years of experience in small business cover a variety of topics. If you are looking for more small business help please check out http://www.smallbusinessdelivered.com
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