Establish a basic operating budget

A budget is just a plan for your money before you spend it. A basic operating budget sets expected revenue and expenses so you can spot overspending early instead of at year-end.

Do this

1. Estimate your typical monthly revenue from recent history.
2. List your fixed costs (rent, software, insurance) and variable costs.
3. Set a target for each category — what 'normal' should look like.
4. Each month, compare actual vs. budget and adjust.

Simple Operating Budget

Build a one-page monthly budget:

EXPECTED REVENUE: $______

FIXED COSTS (same each month): Rent / equipment: $______ Software / subscriptions: $______ Insurance: $______

VARIABLE COSTS (move with sales): Materials: $______ Marketing: $______

TARGET PROFIT: $______

Each month, put actuals next to targets. Big gaps = where to look first.