Your motoring costs are likely to be fairly high - you'll probably need to keep at least one van on the road which you use to carry supplies and equipment to and from venues.
Enter in your cash flow forecast the cost of running any business vehicles. Don't include the cost of the vehicle itself - include that under 'Capital expenditure'.
Running costs include:
- the cost of fuel used for business purposes. It will be difficult to estimate how much business mileage you will do. However, if you assume that most bookings will be within a certain distance of your premises, say 25 miles, you will be able to make a reasonable estimate. If you know the average fuel consumption of your vehicle you can then estimate how much the fuel will cost you
- servicing and repairs
- replacement tyres, exhausts and so on
- road tax
- any road tolls and congestion charges
Travel expenses include all the other expenses incurred on business travel that is not made by car. These might include:
- public transport
- hotel expenses
For example you might travel by train to a trade exhibition 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.