Money

How to budget for your company so you can grow forever

Knowing how to budget will provide you the freedom to be creative

How to budget for other types of fixed expenses or variable expenses

While fixed and variable expenses cover every kind of expense, there are other ones worth highlighting.

Capital expenses

Make sure you account for how you life fits into how you budget for your business

Capital expenses relate to purchasing fixed assets such as land, equipment, or real estate. When you have a capital expense, it’s usually financed in whole or in part, meaning you will have a payment to make each month (or another arrangement).

Making capital expenditures should only be done if it fits into your business plan and is directly tied to revenue. In most cases, there are ways to mitigate capital expenditures through leasing or renting – and these options are typically much cheaper. The thing to be aware of with renting or leasing is that you will have to deal with a landlord or owner, which may not be desirable for every business.

Overhead expenses

Overhead expenses are expenses not tied to revenue generation. These can be fixed or variable, depending on how they work, and include:

  • Legal expenses
  • Government fees
  • Overtime wages

Or anything else not directly tied to creating a product or service for sale.

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