Enter in your cash flow forecast the cost of running any business vehicles. This includes delivery vehicles and farm vehicles such as tractors and fork lifts. (Don't include the cost of the vehicle itself - include that under 'Capital expenditure'.)
Running costs include:
- the cost of fuel used for delivery purposes. It may be that you will need to make a substantial number of deliveries of your produce to various trade customers, particularly if you're planning to sell direct to local shops and catering establishments. Try to make an estimate of the likely cost of this
- the cost of fuel used by farm vehicles and equipment. Remember that farm vehicles like tractors can use 'red' diesel, which is significantly cheaper (usually around 50% of the normal diesel pump price)
- servicing and repairs
- replacement tyres, exhausts and so on
- road tax. You will need road tax for both delivery vehicles and for farm vehicles if you are going to drive them on public highways
Travel expenses include all the other expenses incurred on business travel which is not made by car. These might include:
- public transport
- hotel expenses
For example you might travel by train to visit a major customer and stay overnight.
Some of these costs, such as fuel, you will incur every month. Others, such as road tax, you can pay annually, every six months, or in monthly instalments (by direct debit). Enter your estimate of motor and travel expenses in the months when you expect to pay them.