But not in budgeting. In fact I would much rather throw any budget out the window and just spend as I desire. Wouldn’t we all? But the reality is when you are starting a business you have to take time to consider your income and expenses.
Every smart entrepreneurial woman needs to learn to budget. The truth is if your not paying attention to your finances your probably losing money. And that is certainly not sexy!
So here are 3 tips every female entrepreneur should know about business budgeting.
Tip #1. Set up a business budget. A business budget is simply taking the time to know how much money you have, in this case for your business and knowing where you are spending it. The first step, as a female entrepreneur, is deciding how much money you can spend each month on your company and then where you want to spend it.
As your income grows so does your business budget. It is amazing how many of us start our business without really creating a budget. One reason work from home entrepreneurs don’t take the time to make a financial plan, is because getting started with a home-based business is just not very expensive.
But as your organization grows so does your expenses. The best time to start budgeting is from the very start.
What we use to keep track of our finances is an Excel spreadsheet, which at first looked very intimidating to me. They really are very easy to use, but if it’s intimidating at first use whatever works for you. There are tons of budgeting programs and apps available and if they still look intimidating a notepad will work too.
Tip # 2. Take the time to document ALL your income and expenses. We took the time to set up an excel spreadsheet when we got started. We were super excited and going to do, “everything the right way.” Well we all know, when you are a female entrepreneur there will always be a few “bumps in the road.”
Let me share one of our entrepreneurial experiences, so you don’t make the same mistake.
When we first started as female entrepreneurs we got our blog set up, started doing blog posts and some affiliate marketing. Things were going well so we started to expand our advertising and some automation services on our blog.
We had a monthly spreadsheet on Excel but as we got busier we didn’t keep it updated with all the automatic withdrawals that were coming out. Well sure enough as time went by we lost track of them and ended up paying for services that we had not used for months.
Luckily for us some of the companies did reverse some of the charges and the amount we lost was not that much but it sure was enough to teach us a lesson. As women entrepreneurs it wasn’t very good financial planning.
Tip #3. Review your budget regularly. Depending on the size of your business and how many transactions you have occurring, will determine how frequently you need to review your finances. As you start your company, you may only need to review your business budget quarterly, but as your company grows it will be important to review it much more often.
As a female entrepreneur with your own home based business it is easy to get started on your company, without any real thought of your finances and how much money you are spending each month. Creating your business budget and keeping track of your finances is essential to your success. If you don’t have a budget now make it a goal and stick to it. If you have not started your company yet, the perfect first step is to look at your personal finances to help you get started on your business budget.
We would love to hear how you are doing in your business and your tips or advice for women entrepreneurs. Leave us a comment below and as always we love it when you share our posts.
To Your Life Without Limits,
Elena & Jean
P.S. We have tons of tips and strategies in our Free 7-day series, “Living A Life Without Limits.” Sign in at the top of this page and your tips will be delivered directly to your email inbox.