Creating a Budget for your Business

We all have budgets for our family income, but do you have one for your business? If you don’t, how do you know how much money you can spend on advertising, marketing items, outsourcing, and business related items?

A budget is a must or you might find yourself spending more money than you have and you will struggle and may have to take money from your family income to make ends meet. That is not good because that can cause more financial issues than you ever dreamed possible.

Creating a budget for your business can be a little difficult if your income each month changes. The best thing to do is create a budget based on the money you know you have coming in each month. If you have more money in any given month you can either set that money aside or you can do a little more advertising or outsourcing that month.

Here are the steps needed to create a business budget.

• Income

List all of your income streams. Remember to include residual income that you may receive. Income from affiliate marketing is a little more difficult to count, but you can if you have income that is the same from sales that are gathered monthly.

• Expenses

Write down all monthly and yearly expenses that you will have for your business. These would include hosting, domain names, associations that you are a part of, outsourcing fees, and any other things that you will have related to your business. Make sure to include the monthly charge for each and the approximate due date.

• Other Expenses

Write down any expenses that you would like to have. These would include advertising spots, marketing materials, outsourcing that you are not currently doing, etc. These things will happen when you have a good month and can afford the extras. Make sure you include the fees associated with them so you know how much they will cost you.

• Total

Create a list of expenses and which form of income will pay them. If you get paid once a month it will be a little tricky because you will have to either pay everything at the beginning when you get paid or spread it out so it lasts throughout the month.

When you create a budget, you won’t forget to pay a bill and you will know when you have extra money that you can use to do some things for your business that you wouldn’t normally be able to do. It’s a good idea to stick some money back just in case you have a bad month for some reason.

A budget will also prevent you from over extending yourself and not having enough money to pay for your monthly expenses that you must pay for. When this type of thing happens, you may have a hard time coming back from it. If you do come back it may require borrowing money or taking out a loan. A budget will save you from the headache that this would cause.

Article Source: http://www.wahm-articles.com

Corrie Petersen runs a successful Virtual Assistant business. She enjoys helping others reach their goals and dreams. Check out her website at www.virtualfreedom4you.com.

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