A budget tells us what we can't afford,

but it doesn't keep us from buying it.

The Language of Money

Have you ever heard the saying it costs money to make money? In business, this is a cold, hard fact. When it comes to running a business, you need to make more money than you spend

And if you want to make money, you need to speak money.

Revenue - The money you get from customers

Cost - The money you spent creating what the customer paid for

Profit - The money left over when you subtract your cost from your revenue.

Tax - The money you owe the government when you do business

Video: Drafting a good budget

A budget is telling your money where to go instead of wondering where it went

Activity: Calculating Profit

Video: Little costs add up

Your Startup Budget

You should now have a better idea of what kind of costs you will face when running your business. It is time to put together a budget so you know how to spend your money wisely.

Business Plan Part 8: Startup Budget

End of START Phase

Congratulations! You have finished the first draft of your business plan! You have nowhere to go but up.

Before moving on to the GO Phase, let's do a quick recap of the START Phase and make sure we have all of our paperwork completed.

START Phase Recap