Page 56 - The Bootstrapper Bible

ChangeThis Start with the expense side. Make a list of every fixed expense you face month after month, no matter what. Rent. Salaries to other people. Leases. Whatever. Then add to this the actual average variable expenses youʼve faced each month over the last six months. Are you regu- larly spending $300 a month on travel? Put that down. If your variable expenses vary (hey, thatʼs no surprise!), then try to get a handle on what per- centage they vary every month. For example, if the money you spend on freelance designers over six months looks like this: JANUARY $1000 FEBRUARY $2000 MARCH $500 APRIL $0 MAY $2000 JUNE $500 Then you have an average of $1,000 a month, but a variation of as much as $1,000 a month either way. As you build your expense analysis, create three columns: MOST AVERAGE LEAST So in this case, youʼd enter MOST AVERAGE LEAST $2000 $1000 $0 | iss. 6.01 | i | U | X | + | h 56/103 f