Step 2 Work out your business and household budget

​Variable costs

The variable costs you have will depend on what type of business you have, and how much trade you have done. This may include things such as the cost of buying stock and materials, and travel costs.

Business gas, electricity and phone bills

You may be able to shop around for better deals on these types of bills. Check to see if you are tied into a contract as there could be penalties if you try to leave a contract early. If you are not tied in, you can compare the prices of several suppliers. There are independent price-comparison websites that can help you find the best deal. Always check the terms and conditions to see what would work best for your business.

You can also ask other suppliers, such as those supplying you with goods, for better prices. Or you could consider using cheaper suppliers. Ask for recommendations if you are considering changing your supplier.

Other costs

Check to see if you are paying too much for your accountant’s fees. Ask other businesses in the area for recommendations and compare prices to see what would work best for your business.
If you pay for advertising, consider the added business this brings in. If your current way of advertising is not bringing in a lot of business, consider changing the way, and how often, you advertise.

Next steps...

You are now at the end of your business budget. Don’t worry if your budget is only rough at this point. If you need any extra help, contact us for advice.
You now need to go to the next stage of step 2.
You can use your drawings (the money you can take from your business) to start your household budget. Use the checklist at the start of the next section to check what you need to think about when doing a household budget.
Doing the household budget will help you decide what your options are for dealing with your debts.