Get started on your budget
Now that you have gathered all of your information, determined your goals, and thought about the future of your business, it’s time to get started. The first thing you need is a blank budget template broken down by month. Adjust the template as needed to add or take away categories so it fits your business.
First I start with expenses. Enter your fixed expenses (such as rent and insurance) as well as your variable expenses (such as utilities and payroll). Then enter any new expenses or changes in expenses. Next I enter revenue. This is where you may need to do some math. You’ll need to look at your prior data to see a what rate your business has been increasing (or decreasing). Use that percentage to compute your revenue. Next you’ll enter cost of goods sold. Again, you’ll need to do some math to see what your COGS rate is so you can figure out your COGS compared to your revenue.
Now you have your basic budget. From here you will need to figure out what changes need to be make in order to meet your goals. Do you need to budget more for marketing/advertising so you can increase your revenue? Do you need to cut some expenses that you had in prior periods so your net income is higher?
This is a VERY basic look at budgeting, want more help, worksheets, and templates? My budget class will be up soon and will go more in depth and have some great downloads to help you. Click here to sign up for the online course and see all of the courses available.