Budgeting in the First Year of Business

Sometimes it's difficult to know where to begin in creating a budget when you have no prior experience on which to draw. That shouldn't prevent you from creating a budget, however. Some suggestions for resources when trying to project your first year of business follow:

• Contact financial advisors in the community who work with businesses of your typeaccountants and bankers, for examplewho might have some insight into what you can expect in your first year.

• Try to meet with other members of your profession, through professional societies, local business clubs, or direct contact with owners of similar companies, and explain that you are looking for guidance and helpful hints about determining the financial expectations of a company such as yours.

• Use the library and the Internet to research your field. You can probably locate an Internet group of people who are in the same field as you, and who can lend advice and insight.

• Draw on your own understanding of the industry or profession and that of the people who work with you. Your company might be new, but you have knowledge of the business. Sometimes a gut feeling based on experience and wisdom provides the best guidance.