As a home or online business owner, learning how to handle the financial aspect of your business can be one of the most difficult tasks. It has taken me years of trial and error and multiple systems to figure out how to set up a small business budget so I can track my income and expenses as well as make sure I am making a profit.
You have to treat your business like a business and run your business like a CEO of Me if you want your business to grow and profit. If you are afraid of making money or do not manage your money properly then you will quickly lose any money that you do make. (I speak from experience.)
Today I am sharing a few methods for handling your finances as well as two free printable personal and business budget worksheets. Click here for the Printable Personal Budget Sheet and Click here for the Printable Business Budget Sheet.
As an entrepreneur, I have had good years, great years and bad years financially. Once I got in the right money mindset and took control of my business finances, I was able to enjoy more income and much less stress.
The first thing you need to do is figure out how much money you need to make for your personal & household expenses on a monthly and annual basis. This should include your monthly regular expenses, annual expenses, surprise and emergency expenses as well as bonus items you would like to be able to purchase this year.
Budget and Manage Money
In the Personal Budget Worksheet, you will see three columns –
1. The first column is your regular monthly expenses: rent or mortgage, utilities, insurance, cable, internet, cell phones, household supplies, savings, credit card payments and any bills you have due every single month.
2. The second column is for your annual expenses. This would include any bills you only pay once or twice a year. For instance, if you pay your car insurance every 6 months or 12 months, or your annual property tax, even money you want to put aside for an annual vacation.
3. The third column is for any additional expenses. This could be something you know is going to be an expense this year (tires for your car, fixing the back deck, re-doing the bathroom floors…) or an expense you would like to be able to afford this year (re-modeling your kitchen, taking a second vacation, having a certain amount built up into savings).
Once you have everything listed, take the monthly column and multiply it by 12. Then add that total to the totals for columns 2 and 3. Once you have that final total, divide it by 12. This number is your preferred or necessary minimum income. When I first went through this process I was really surprised at how much higher my monthly income goal was than what I had been budgeting for in the past (and sometimes made in the past too).
I am passionate about teaching home and online-based business owners how to master the business side of having a business so they can dream bigger, work smarter and live better. Through my training, courses & products, you will be empowered to develop the mindset of a CEO of Me®, to create & implement action plans and systems for success and to attract customers & team members through authentic marketing and branding. If you are ready to take your business to the next level without the stress and struggle of learning the hard way, then you are in the right place & I can’t wait to help you build your successful business!