Starting Up: Budgeting for Small-Biz Travel

WHEN THELMA M. MCCALL recently sought out $35,000 in start-up capital for her patented board game "Shapes and Numbers," she knew she'd also have to secure funding for business travel.

"To get [a company like] Mattel to manufacture the game, I'll need to cover time off and travel fees," says the former middle-school teacher from Arlington, Va., who plans to take her game on the road to find willing toy manufacturers. "It will generate quite a bit of money as far as royalties are concerned. I just need to get it in front of the right people."

Traveling for business is rarely cheap. And according to the American Express annual Global Business Travel Forecast, prices are going up. The average cost of a domestic trip including airfare, car rental and hotel stay is expected to increase 6% to $1,110 in 2008, up from $1,047 this year. The price for international trips is forecast to advance 7% to $3,171 next year, up from $2,966 in 2007.

Budgeting for travel expenses is particularly burdensome for small businesses, which typically have fewer resources than their larger counterparts. And it's usually the first to go during an economic downturn. But for many budding entrepreneurs, putting in face time with clients and customers is paramount. In-person meetings can help set you apart from more established competitors — and, as in McCall's case, potentially land a lucrative business deal.