Tuesday, June 16, 2015

How to Create a Budget For Your Business




The time will come when you will eventually have to spend money on your business. It's really inevitable. This can be scary, but it doesn't have to be. When I first decided that I wanted to be an entrepreneur, I knew that there were plenty of free resources that I could use to build my business, but I also knew that the day would come that I would have to spend money to continue to grow. Instead of letting that idea overwhelm me, I sat down with my then boyfriend (now hubby) and created a budget that would work for me. When you're just starting, your business budget does not have to be massive. It is a good idea, however, to start planning for one to create good business habits. Below, I'll show you how to to create a budget for your business. Be sure to print out the free daily expense tracker, monthly budget, and business budget.

How to Create a Budget For Your Business

1. Record Monthly Expenses

Okay so first things first, you have to know what bills you have and where your money is going. If you can't keep up with you personal bills then right now may not be a good time to start a business. Starting and running a business takes organization. Successful entrepreneurs know where they are spending their money and you should too. Bills can feel overwhelming. Instead of letting them overwhelm you, take control and let them empower you. Sit down and right out a list of monthly bills and expenses. Even if you don't get a bill for something you spend on monthly, write it down. For example, every month I get groceries. I don't get an official bill in the mail for it, but because it's a reoccurring expense, I treat it as a bill and set a certain amount of money aside every month for it. The money for your bills should automatically be set aside and marked as off limits.

2. Track Daily Spending

Not only is it important to know what bills you have monthly, but it's good to track your daily spending. Tracking your daily spending provides you with a good snapshot of your spending habits. Once you are aware of how you are spending your money daily, you'll be better able to identify areas where you can spend less and save more. This can be very important, because you can allocate some of the money you save to go towards your business budget.

3. Assess Business Needs 

The theme here has been knowing where your money is going. The same applies here. When creating a budget for your business you need to know where your money will be going. That means making a list of what you will need to run your business on a month to month basis. Once you have made this list, take some time to figure out how much each item you need will cost. Then assign a projected cost to each item.

4. Research Costs 

Don't just settle for the first price you come across. Just because you need it to run your business does not mean you can't get a better price for it. Look at each item on your business needs list and find a service that will provide you with the quality you need and at the best price. Think of your business needs list as a grocery list and look online and even locally to find the best deals.

5. Build Your Business Budget 

Based on the above you should now be able to see where your money is going and where it is coming from. You should also be able to identify where you will have extra to spend on business. Now you will want to choose how much you feel comfortable spending on your business at this time. Think about the must haves and what things you can add to the budget later.  Build your business budget by adding only the things from you must haves list. Over time you can expand your budget as needed and when you're ready.


What has been stopping you from creating a business budget?

5 comments:

  1. Kelley, you are so insightful!! This is just amazing! I appreciate the knowledge you give us! #BLMGirls

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  3. Great tips! This is very helpful! #BLMGirls

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  4. Great post! Whenever I work with someone I always ask... What is the budget? This let's me know how serious they are #BLM

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  5. Kelley these are great tips. I agree at some point in your business you have to start investing in your business in order to take your business to the next level. #BLMGirls

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