Updated: Dec 15, 2020
Hey entrepreneur, hey!! Let’s be honest, how many of us are out here like Budget who?!
Budgeting is financial superpower. Track it down, capture it, throw it in the dungeon… No wait, wrong to- do list.
Okaaaay... so- at any rate: Budget is the B-word all entrepreneurs/business owners should come to know and love.
Like seriously, forget about the dungeon...
Business Budget Explained
Your business budget is an overview of your finances- it provides important information regarding the state of your finances and your goals. This information will be the reference point of all your decision making and can help you secure funding as your grow.
Creating Your Budget
To create your business budget you need to determine a few things:
1. Where is the money coming from?
Figure out how much money your business is bringing in each month and from what source(s).
2. Where is my money going?
Determine your Fixed Costs (expenses that stay the same each month like rent, website hosting, etc.) by adding them all together.
"What if I don’t have and fixed costs yet? "
Use your projected costs by estimating what you think your expenses may be.
Tally your variable costs (expenses that change in cost each month like electricity) at the end of each month. Over time you will have a better idea of how these expenses change during certain times which will help you make accurate projections and fine tune your budget.
Additional Purchases should be included also. One- time purchases (If you’ve got your eye on a new laptop or seminar) should be added to your budget. Be sure to factor in some rainy day funds for those unplanned purchases and/or expenses.
3. Add it up
Tally your total income and your total expenses to determine your Net income.
Total Income – Total Expenses = Net Income
4. Keep it Real
You've done the work. You see it right there in front of your eyes, so keep it real!! Your budget is your appetite suppressant- use it and eat less or don’t use it and overeat and end up giving all your clothes away... Totally your choice!!
Give this simple Net Income Calculator a spin to get an idea of your current budget.
Need to do some math before you do some math?!
No worries! Download our fillable Revenue and Income Tracker worksheets with a bonus 12-month spreadsheet!