How to Create a Simple Small Business Budget
A budget is a plan for expected income and spending over a defined period. It helps owners set priorities and notice problems early.
The basic formula
Budget balance = Expected income − Expected expenses
A simple example
Group spending into fixed costs, variable costs, one-off purchases and owner compensation. Use realistic sales assumptions and compare actual results with the plan each month.
Practical tips
Keep the first version simple. Update assumptions when demand, supplier prices or staffing change, and separate business and personal transactions.
Put it into practice
Use the free SoloBizKit calculators to test your assumptions and compare different scenarios. Keep your inputs and assumptions up to date as your business changes.
This guide is for general educational purposes only and is not financial, legal, accounting or tax advice. Rules and circumstances vary by location.