Course: Why businesses borrow money
14 minute read
Estimating recurring expenses
Once Vanessa is settled into her new space, she’ll be able to make a lot more hot sauce — but she’ll also have more expenses.
Her commercial kitchen charges monthly rent and a set rate for utilities. She’s planning to hire two people to work 10–15 hours per week, which will allow her to make 12 batches of sauce each month. That means having enough bottles and ingredients on hand for at least three batches of sauce every week.
Other recurring expenses include business insurance to help protect her against unexpected costs and a small budget for paid social ads. See her recurring expenses below.
