The business budgeting process-get control of your money!

http://theawesomeliving.com/the-business-budgeting-process If your business is getting started, THE goal is to start bringing in revenue so that your upfront expenses begin to be covered. If you have $50,000 in expenses the first year and $50,000 in income, you may be still afloat or you may be out of business, depending on how you planned your budget. What is budgeting? It is planning for income and expenses over a period of time. What should you include in your budget? TIME Equipment costs Storage costs for equipment State Licensing and Registration fees Insurance- liability, health, and/or equipment depending on your business Office supplies Legal, Accounting, and Bookkeeping Expenses Website (design and maintenance) Professional Training (continuing education, seminars, online training, etc) Professional Memberships (Chamber of Commerce, other professional organizations) Telephone MARKETING-The best way to increase revenues is to increase your marketing efforts. Planning the Budget Keep in mind that some of these costs are going to be fixed, some will be variable. Do what you can to maintain a low fixed cost business to give yourself more options when cash gets tight. Remember that it's critical to plan for marketing upfront so that your business will acquire customers. There are many low cost marketing strategies that you can try to see what works before spending $1,000's on something like a billboard. When you're just getting started, it's likely that you'll be optimistic and plan your income accordingly. Timing your cash flow is what will be the challenge. Plan for the expenses you know about month by month. Add a buffer for unexpected expenses that will come up. Plan for a gradual increase in income- be conservative. Unless you have an established clientele base that you're taking with you (ie hairdresser, financial planner) new customers will be somewhat cautious and watch from a distance before trusting that you're going to stay in business. Work the Plan Once you've established your budget plan, you may see that expenses are exceeding income for a few months. Be sure you have enough savings to carry you through those months, and some months beyond that. If you're leaving another job, be sure to have a solid marketing plan to get revenues right away. If you're doing your business part-time, don't think about leaving until you've proven a few months of income exceeding expenses. Do your best to stay on track but if things come up, don't be surprised. Remember to focus on generating revenue by getting customers, not growing inventory or equipment stockpiles. For detailed explanations on this aspect of business planning, get more details at http://theawesomeliving.com/the-business-budgeting-process/ Jenn Glidden and other experts share their experience with starting businesses for success.

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• financial planning
• business budgeting
• business planning
• budget your business
• budgeting process
• how to budget
• startup costs
• business finances

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