Hello, this is Hall T. Martin with the Startup Funding Espresso — your daily shot of startup funding and investing.

Operating expenses are the day to day expenses a business incurs. They support the operational side of the business covering sales, marketing, product development, and administration.

These expenses include legal, digital marketing, payroll for employees, accounting, rent, insurance, IT costs, office supplies, bookkeeping services, phones, computers, and more. 

Recurring expenses, such as sales and marketing expenses, are often defined as a percent of revenue.  These include software subscriptions, advertisements, promotional material, and dues.

Build an operating expense budget with a bottoms-up approach by costing out the individual components such as employee cost, administration, and IT, as each expense will be specific to your business. 

Over time, these costs will grow at a lesser rate than sales, which will increase the profit of the business. 

Thank you for joining us for the Startup Funding Espresso where we help startups and investors connect for funding.

Let’s go startup something today.
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Hall T Martin is the director of Investor Connect, which is a 501(c)(3) nonprofit dedicated to the education of investors for early-stage funding. All opinions expressed by Hall and podcast guests are solely their own opinions and do not reflect the opinion of Investor Connect. This podcast is for informational purposes only and should not be relied upon for the basis of investment decisions.