Today, we’re diving deep into the world of business budgeting strategy, specifically tailored to those fabulous women out there who are making good money but have nothing substantial to show for it. 🤷♀️ If you’ve ever wondered how to save wisely and when to spend in your business so that it can eventually support you, you’ve come to the right place.
So, grab your coffee or tea, settle into your favorite spot, and let’s get down to some practical and empowering advice!
135 | Business Finances: How to Set Up Your Business So It Can Actually Pay You & Support Your Family's Budget – Financial Coaching for Women: How To Budget, Manage Money, Pay Off Debt, Save Money + Paycheck Plans
The Golden Business Budget Rule: No Makey, No Spendy 🙅♀️
One of our favorite phrases in the world of financial coaching is “No makey, no spendy.” This simple yet powerful motto encapsulates the essence of responsible business finances. Think about it this way: would you buy a fancy car before you even have a driver’s license? Probably not! The same principle applies to your business.
We’ve seen it time and time again – entrepreneurs splurging on their business before it’s even making a dime. But remember, before you open your wallet, you’ve got to get scrappy and creative with what you have. Free resources and budgeting are your new best friends in the early stages.
Here’s a golden nugget to keep as a mantra: “I have to make money before I can spend money on my business.” 🌟 Wise words, indeed!
Frugality is Your Friend 🧐
Starting your own business doesn’t mean emptying your bank account on every fancy tool or software you come across. In the beginning, embrace frugality. Be resourceful. Ask yourself, “What can I do for less?”
We know the temptation to invest in every shiny object is real, but think about it – do you really need that expensive software when a more affordable alternative will do the trick? Be like us and proudly say, “We use Google Suite for just $12 a month!” It does wonders.
In the early days, getting scrappy and creative can lead to surprising solutions that won’t break the bank. 💡 Check out our first podcast booths:
Make Your Business Self-Sustaining ASAP 💼
Here’s a crucial point: if you have a side hustle while your spouse is the primary breadwinner, remember that it’s not their responsibility to fund your business indefinitely. Ideally, your business should become self-sustaining as soon as possible.
Start by identifying the essential upfront expenses for your business launch. After that, make it your mission to have your business cover its own costs. This not only eases the financial burden on your household but also empowers you to take control of your business’s financial destiny.
And even if your spouse isn’t involved, be sure to protect your personal budget from your business budget! Don’t rob your personal finances to feed your business. Balance is key! ⚖️
Progression of Stages: The Business Budget 📊
Business finances have stages, just like personal finances. In the early stages, you’ll be using free resources and being scrappy. But as you grow and make more money, your expenses will naturally expand.
Your business budget should outline your monthly and annual expenses and set caps on spending. It’s all about being intentional and forward-thinking. Remember, impulse buying is a no-no, whether it’s for your business or personal life.
So, grow at the speed of cash. Start small, set a budget, and let your profits guide you towards those fun investments when the time is right. 🚀
Enter Profit First: Your Money Management System 💰
Now, we’re about to drop a game-changer on you – the Profit First system by Mike Michalowicz. This financial management system is like a GPS for your business budgeting strategy. It ensures you get paid from day one of your business journey.
Instead of the traditional income minus expenses equals profit equation, Profit First flips the script: income minus profit equals expenses. This way, you’re guaranteed a paycheck right from the start. 🎉
The beauty of Profit First lies in its simplicity. It allocates your income into different categories like profit, taxes, expenses, and your paycheck, all by percentages. It’s like having a personal finance assistant that makes the decisions for you!
With Profit First, you’re not just spending randomly; you’re setting a limit and sticking to it. 🚫💸
Separate Business and Personal Finances 💼🏡
Your business and personal finances should be as separate as a penguin in a tuxedo 🐧. Keep separate bank accounts for each to maintain clarity, sanity, and good accounting practices.
When you earn income from your business, don’t think of it as your paycheck. Think of it as revenue that needs to be divvied up into its rightful places – profit, taxes, expenses, and, yes, your paycheck.
This separation also makes tax season a breeze and keeps your accountant smiling. 😁
“So, there you have it! Business budgeting strategy doesn’t have to be a headache. Start small, stay scrappy, and use systems like Profit First to keep you on the financial straight and narrow.
Action Item Checklist:
- 📝 Implement Profit First system for your business.
- 📝 Set up separate bank accounts for your business and personal finances.
- 📝 Create a business budget outlining monthly and annual expenses.
- 📝 Embrace frugality and resist impulse purchases.
- 📝 Grow at the speed of cash – invest wisely as your profits increase.
- 📝 Remember, no makey, no spendy – your business should make money before you spend it.
Now, go forth and conquer your financial journey, one wise budgeting decision at a time! 💪💰
Got questions or need further guidance? Feel free to reach out to us at email@example.com. We’re here to support your financial success! 📧
Book Your Free Call Now!
We are excited to create the time & space to talk to you about your current money situation. This is a free, no-obligation call where we can answer questions you may have and maybe find some quick wins for your budget.
What do you have to lose?