Budgeting in Business
Hi everyone! Sarah here.We have hit the last day of My Simple Budget Week! Phew.Talking about money all the time can be boooooring. It is so important though, so I decided to dedicate a full 5 days to talking about it on the blog. Also, if you were to bet a million dollars that there will be more blog posts about finances and budgeting in the future then you friend, would be a millionaire!
Here we go.
Budgeting in your personal life is one thing, but what if you run a business? What if you are starting a business (or want to) how does budgeting come into play then? Well the principles stay the same. Don’t spend what you don’t have.
Don’t spend what you don’t have.
I understand that there are start up costs when starting a business, there always are. But I am going to repeat, don’t spend what you don’t have. If you only take one thing out of today’s post, let it be that.
Budgeting in an Existing Business
Leverage your funds. Figure out where you can cut costs in order to purchase the things that you need. For example, are you hiring someone else to do you marketing and social media? Is that something that you can do? Social media in business is changing. It used to be that we paid the younger generation to be on our accounts for us and market for us because they were already there and knew what they were doing. Now, however, it is shifting.
The reality is that no one knows your business better than you do. You are going to be the best marketer for your business because you started it, you are the one who is passionate about it. Social media marketers are realizing this change. They understand that the cost of hiring a social media and marketing manager can be very expensive for a small business so they are switching to the education model. Now, instead of paying an hourly rate or even a contracted rate, small businesses can invest once for a lifetime supply of information. Women like Jenna Kutcher, Alex Tooby and Hilary Rushford have a wealth of information that is neatly packaged. The investment with these ladies may seem like a lot, but it is worth it.
Still don’t want to pay it? Shoot me an email and I can give you some pointers.
If you run a small business and you just have a few employees, could it be run out of your home and your employees work remotely? Can you cut costs by switching to wired mice for your computer instead of wireless that need new batteries every few months?
I want to start a business
Start up costs can get expensive, that isn’t a secret. But remember, don’t spend what you don’t have. First you are going to want to do your research. How much do you need for materials and marketing? How much will a website cost you? Once you have those numbers figured, sit down with your family or spouse/partner and decide how much money you want to or can dedicate to starting your business. You don’t want to invest more than what you think you can get back. Maybe you can’t have it all right now and that is ok. Start small and then grow.
Marketing can be the most expensive portion of any businesses budget new or old. Leverage the free tools that are out there for marketing. Get an Instagram account, start a Facebook Page or join small business Facebook Groups.
Want a little bit of help? Let’s chat. I would love to help you get started!
I just started a small business myself, Blue Oak Farm, and have stumbled and made many many mistakes along the way in all things from marketing to product sourcing. Let me share with you some of my mistakes!
Budgeting in business is just like budgeting in your personal life. Only use credit cards if you can pay them off each month, only spend cash that you have available and remember don’t spend what you don’t have!