Using a budget is INCREDIBLY important for your business. Without a budget you have no idea what money is coming or going. You are probably living in a state of constant money chaos! Not only that, your money is telling YOU what to do instead of the other way around.
Without a budget – you look at your bank account and you see that the amount in there will not cover the new computer you desperately need so your money is saying “NO!”
Wouldn’t it feel better for you to tell your money – “actually, I can because I know that all my bills have come out already this month and I have money set aside in savings that I can use”.
All you need is a budget and you can feel EMPOWERED by your numbers and no longer controlled.
Budgeting can seem overwhelming though – I get that. Its new, it’s scary and it just doesn’t feel natural to you.
That’s okay – because I am going to share with you the 5 Steps for making business budgeting, sassy and sexy!
- Add up ALL your income sources
- Determine your fixed costs (i.e. Monthly subscription payments, team members, etc.)
- Include variable expenses (i.e. Client lunch meeting, office supplies)
- Estimate/Predict any One-Time expenses (i.e. A business retreat you have been wanting to go to)
- Put all these numbers together in one place and you are ready to PLAN!
It really is that simple. Having all your numbers in one place will easily show you how much money you will have left once all the expenses are paid for. That leftover money…that’s what you get to plan for OR maybe you notice….you don’t have any leftover money but rather you are short some funds. That is okay too – now you know! You can make a plan, look at your expenses and see what you can cut out to make your budget balance.
Let’s chat about budgeting – do you budget? What do you find the most helpful with having a budget? Leave you answers in the comments!
P.S. Check back soon as I will be sharing the next step now that you have a budget on the blog soon – How to take the information in your budget and set aside money for taxes and paying yourself consistently!