Budgeting requires that you estimate your expenses, then compare your appraisal against your actual expenses. Calculate your initial costs first. These may include licenses, business cards, flyers, brochures, internet connection, equipment dedicated to providing your service or making your product. You should include your estimated annual costs in your budget, such as renewing a business license, marketing campaigns, local taxes, insurance. All these items, if required are costs that most businesses pay only once per year.
So, your business budget should appraise your monthly or quarterly earnings. Depending on if you have startup funds or you must generate income immediately, you will also need to draw up a plan for meeting expenses on a monthly or quarterly basis. The difference between your projected income and all of your expenses is your business profit.