A light breeze rustled the leaves as Astraea poured the evening chai. Vardaan, as usual, looked contemplative.
“I’ve been trying to build a proper budget for my startup,” he said. “But I keep getting stuck. Is there a simple way to approach it?”
Astraea smiled. “Absolutely. Building a business budget is just like plotting your business story—you need clarity, numbers, and a plan.”
Step 1: Define Your Business Goals
“Before the numbers, you need the why,” Astraea explained.
Are you aiming for expansion, improving profitability, or just surviving the first year? Your goals will shape how you allocate resources and set spending priorities.
Step 2: Identify Fixed and Variable Costs
“Start by listing your fixed costs—things like rent, salaries, software subscriptions,” she said.
Then move on to variable costs—inventory, shipping, utilities, marketing. This gives you a realistic picture of your baseline monthly expenses.
Step 3: Forecast Your Revenue
“You can’t budget without predicting income,” Astraea pointed out.
Base your revenue forecast on previous months or market research. Be realistic—aim for conservative estimates in your first budget draft.
Step 4: Set Spending Limits
“Once you know your costs and expected income, assign limits to each category,” Astraea said.
Think of this as telling your money where to go—marketing, operations, R&D—before it disappears.
Step 5: Track and Adjust Regularly
“Your first budget won’t be perfect—and that’s okay,” Astraea reassured him.
Review it monthly. If your projections are off or expenses creep up, adjust the budget. A flexible budget is a smart budget.
Why Startups Trust 21DEGREES with Budgeting
At 21DEGREES, we help startups like Vardaan’s turn chaotic finances into clean, clear budgets. Here’s how:
Personalized budgeting templates
One-on-one support to align budgets with business goals
Regular reviews to ensure your budget grows with you
Integration with accounting and forecasting tools
Vardaan smiled, noting everything down. “So, budgeting isn’t about cutting corners—it’s about planning your path.”
“Exactly,” Astraea said, lifting her cup. “Build the budget. Then build the business.”
