Financial Planning ­ Personal

It is important when you are launching your own business that you consider what you need to live on. You should break down what your monthly expenses are and make allowances for adhoc expenditure such as car problems etc

Once you do this you add up all the totals and come to a personal survival budget. This is the minimum you will need to take from the business as drawings or a salary.

It is essential that you generate enough money to survive. At first you will experience a tight budget and it is not uncommon for new businesses to operate in the red for the first few months at least. In the beginning, a large percentage of the profit you make may have to be re-invested into the business to allow further development. Once your business develops, it may be possible to reward yourself with increased drawings/salary.

Personal survival plan