The first step is to identify and calculate all of the projected costs for operating your business for one year. Keep in mind that some costs are fixed, while others may change as your business grows. Thus, you should put everything in a spreadsheet that can be easily updated as your business changes. Also, costs such as merchandise for resale will be recovered in the sales process, so don’t include those here. In addition, include your desired paycheck.
The final result will be the total estimated amount that you need to pay all of your yearly bills plus your paycheck. Always keep in mind that there will be some unexpected costs and fluctuations in some of your costs, so don’t assume this number is carved in stone.
—Sawgrass
