It doesn’t matter what type of business you run and how large or small it is, you must work with a budget. When you have a list of your bills and what you expect them to be, you’ll know how you’re doing with your income and if things are more expensive or if you’re finding things are less than what you thought.
You can create a budget on your own using an Excel spreadsheet or Word document or you can use a program to make it happen. The important thing is to get it created so you can work from it. Once you do, you’ll begin to see a difference in your business and you’ll realize you need one each month in order to be successful.
There are several ways to create a budget, but ultimately the outcome is the same, so you’ll need to decide what’s needed for your budget when you create it. Here are things you need to include in your budget no matter how you create it.
- Rent, lease, or mortgage amount
It’s important to know how much you’re expected to pay each month for the building or home you’re in. Some places change the rent amount each month based on your income, so it might be a bit of a challenge to budget for this amount, but it’s important to do your best to forecast it.
- Building Expenses
Building expenses include utility bills you must pay, insurance you must have on your building and your employees, yard maintenance, and other maintenance type tasks you’re required to take care of monthly.
- Marketing Expenses
Marketing expenses should include your flyers, business cards, hosting fees, domain fees, and anything else you use to market your business. Most of these are a set amount that doesn’t change so it’s a little easier to forecast these correctly.
- Office Supplies
Office supplies include paper, toner, pens, paper, postage stamps, letterhead, and notepads. This section basically includes anything you need in your office to run your business.
- Sales Expenses
Sales expenses include anything you need to use to grow your business. This may include lodging if you require your sales people to travel, mileage if they’re required to drive to locations to sale, and parking fees if they must drive and park to handle business transactions.
When you know how much you have to pay each month and what you owe to others so you know what you can do to grow your business and what you must set aside until a later date. You’ll be able to step up your business so you know you’ll grow.