14 Essential Variable Expenses to Help You Budget for Your Business
As an entrepreneur, you need to keep a close eye on your business expenses. While fixed costs such as rent and salaries remain constant, variable expenses can fluctuate month to month. It’s essential to plan for these fluctuating costs when creating a budget for your business.
To provide you with valuable insights, we reached out to successful entrepreneurs and asked them to share examples of variable expenses they’ve come across in their experience running a business. Here are 14 of the most common variable expenses that entrepreneurs need to keep in mind while budgeting for their business:
1. Marketing and advertising costs
2. Office supplies and equipment
3. Freelance fees
4. Travel expenses
5. Inventory costs
6. Client gifts
7. Website maintenance and updates
8. Insurance premiums
9. Bank fees and payment processing fees
10. Shipping and handling costs
11. Continuing education and training
12. Event sponsorships and attendance fees
13. Professional services fees
While these expenses aren’t fixed, they’re essential for the smooth day-to-day operations of your business. By anticipating these expenses in advance and budgeting for them, you can avoid any unwelcome surprises and maintain a healthy cash flow.
Looking at fixed costs alone isn’t enough to understand the full picture of your business’s financial health. It’s essential to ensure that variable expenses are also taken into account while creating your budget.
Planning for variable expenses is just as crucial as budgeting for fixed costs. By keeping these 14 essential expenses in mind, you can develop a comprehensive budget that accounts for all your business’s needs. It can lead to a smooth-running operation and a healthy financial future for your business.