Creating A Business Budget

Creating a budget is one of the most difficult things for most entrepreneurs to do.  Most entrepreneurs are risk taking visionaries, by default this means they are not always that great with numbers and details.  Different people are wired differently.  But if you are going to run your own business, you absolutely must learn to do things that you might not naturally be good at.  

So let’s talk about creating a budget. Before we delve too much into that though, I need to recommend a book.  The Toilet Paper Entrepreneur is one of those books I wish I had written.

You know when you read a book and you say to yourself, “WOW, that’s exactly what I would have said only they put it so much better!” ?  Well, that’s how I felt after reading it.  It is both hilarious and insightful.  Most importantly it will help you think through what your budget should look like.

Back to the plan

Remember when we talked about creating a business plan?  That is going to be a big help in developing your budget.  Why you might ask?  Well, it tells you whats important!

For you online entrepreneurs (and I imagine that is most of you), your biggest expenses will probably be design, hosting and marketing.

Do a little research.  Check out google adwords campaigns for your keywords, are you going to get a professional design, get a quote from a web designer (link takes you to my contact page).

Write down how much you can afford to spend on these things.  A good deal of marketing is free, so you can optimize your marketing strategies in the social media world and probably get by without too big of an investment (something you will learn a lot about in The Toilet Paper Entrepreneur.

Keep an Eye on it

Many people do a budget and re-evaluate every year.  This is a bad idea.  Keep an eye on your budget and you needs.  It is likely that after a month you will realize you over estimated one area and under estimated another.  Don’t be afraid to shift money around as you notice things like this.

Constant reevaluation is essential in any business – especially a new one.  Another post in the series will deal specifically with how to reevaluate.  For now just know that your budget should never be fixed.  It only needs to be fixed if you are a large organization.  For the small business and solo entrepreneur a budget is a good guide, no it is a necessary guide, but it should not be a slave master.

More on this topic

• How an ESTJ can run a Business
• A Better Blog in 31 Days
• Forming a Business Plan
• A Book Review for Serious Entrepreneurs
• Get Off It and Start Your Business

Comments

Leave a comment