Do you know what exactly a Business Budget is? And most importantly – do you have a business budget for your business? Can you run a business without a business budget? In the beginning, when you are working to transform your crafting for fun into crafting for profit, you might. But if you are serious about being successful, then you want to invest your time into a solid business budget. Don’t underestimate the power and value of it in your business.
So what is a business budget? It is your, hopefully very detailed, financial strategy for what you plan to do with the revenue that business generates. A solid budget is your road map to ensure you are on track to meet your goals as they navigate through each month, quarter and year.
Your budget doesn’t have to be complex to be effective. The beauty of a budget is that it illustrates how the numbers are connected, you can see what is coming in, what is coming out, and most importantly you can see the trends and use that information back into better planning for the future. And most importantly, your budget will keep you honest.Human nature is a finicky dynamic. Studies have shown again and again that we tend to overestimate our earnings and most often than not, we tend to underestimate our spending habits. Being frugal is a learned skill, not an inherit trait. But numbers don’t lie. If you teach yourself the discipline of tracking your money and budgeting, it is going to be a big factor determining your success as a small business owner.
If you are an old school and prefer to keep track of everything manually, download these free budget planner printable. If you prefer online tools, I can’t recommend Mint application. It is one of the best, completely free, intelligent tools to keep track of your finances.
Few things to remember:
- Decide on your budgeting tool and commit to using it on regular basis
- Don’t mix business and personal. Create two separate budgets to keep everything neat and separate.
- Figure out your anticipated monthly revenue. If you have been selling your crafts for some time, total up your past sales to give you point of reference for your future monthly revenue.
- Outline all of your anticipated expenses. Devil is in the details. Include every single items you need, no matter how small.
- Don’t forget to plan for the big 4 items – taxes, emergency, expenses, paycheck
- Most Important One – Stay focused, plow away and make money doing what you love
learn more about crafting for profit
- Full Time Crafting Business – When to quit your day job and start crafting full time
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