Calculating Your Fixed Business Expenses as a Small Business Posted on November 3, 2025October 31, 2025 By Kekeletso Nkele, small.news Assistant (small.news) — For many small business owners, sitting down and calculating the cost of their business is a daunting task. The thought of adjusting numbers is very tempting, but it would delay your process. The purpose of knowing your breakeven number is to know exactly where your personal expenses, business expenses, taxes, and profit goals. For this to work, you need to be honest with yourself. 1. The President’s Salary The top part of the worksheet is the President’s salary. This amount is from the personal expenses section; it is not to be adjusted. Your salary is a reflection of what it costs for you to live. You cannot choose to skip on rent, food, or certain bills to close the gap. If you seek to change your own salary, then you have to adjust your personal expenses. This is the only method for getting a realistic breakeven number. Acknowledge what it costs to support yourself. 2. Fixed Business Expenses Fixed business expenses are those that have to be paid regardless of how much money you have or make. Whether it was a good or bad month for business, these bills still have to be paid. These expenses typically include: – Rent– Utilities– Staff salaries– Loan repayments– Bank fees Honesty is important in this section; these expenses are vital to your business running well. Reflect honestly on the infrastructure that makes your business function. Top Stories Jessica Chen on the Creative Economy, Disappearing Arts Funding, and Why Artists Are Small Business Owners On September 23, 2026, Jessica Chen, a dancer, choreographer, and artistic director who runs the nonprofit dance company J Chen Project, joined our small.talk to make the case that artists are small business owners too, and that when creative work thrives, the surrounding community thrives with it. September 28, 2026 How Small Business Owners Are Actually Using AI to Market Smarter Aishah Coleman, an architecture and interior design business owner, taught an audience through the tools and habits that have reshaped how she runs her marketing — no technical background required. September 28, 2026 Indonesia’s Cosmetics Exports Rise 13.7% as Government Ramps Up SME Support and Tightens Regulatory Oversight Indonesia’s cosmetics exports reached $473.8 million in 2025, a 13.7% increase from $416.8 million the previous year , as the country’s Ministry of Industry moves to strengthen support for the small businesses that dominate the sector and help them compete in international markets, according to Personal Care Insights. September 28, 2026 3. Understand Your Breakeven Budget After you figure out your own salary plus any fixed business expenses, you will get your breakeven number. This is the amount needed to cover both personal and business expenses. For many small business owners, this will be the first time they see this number combined, which can feel scary. But knowing your breakeven point can help you make better decisions regarding your small business, such as revenue goals and planning. 4. Buffer Life and business can surprise you. A 5% to 10% buffer should be added for the unexpected; this helps build resilience in your financial plan. Anything ranging from unexpected emergencies to an increase in utility costs. It is always better to plan for the unexpected. 5. Plan For Profit Building a budget for your small business should not be about making ends meet but about creating a profit. Sustainability is the goal that comes from planning beyond your expenses. Ask yourself: – How much profit do you want to make?– Are you setting a small profit goal that can grow over time gradually?– Or are you aiming for a bigger profit to fuel growth? Profit is a choice, not an afterthought. 6. Taxes You always have to do taxes for your business, so you need to associate them with your profit. Build them into your plan to avoid surprises later. 7. Tell The Truth Honesty is the key to making this process work for you. Your expenses will most likely surpass your revenue if this is your first breakeven calculation. But this is normal. You went through this process to properly adjust and plan better moving forward. A New Era Congratulations, you’ve done the hard part! Looking at all your expenses from business to personal. Now, you need to use this information to make the proper adjustments needed or your life and business. Then, you can begin a new era where your profits exceed your expenses. Every small business owner needs someone in their corner. With Silver Lining’s silv=r™ platform, you can get the tools, structure, and human support you need, every step of the way. Sign up today! Latest Stories
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