Budgeting is not a dirty word.
Do you groan when you hear the word "budget"?
You're not the only one. Like "diet" and "marketing," "budgeting" is one of those concepts our culture has come to view in a negative light, even though perhaps it has just been misunderstood.
What Is a Budget?
Let's go to the drawing board and think about what a budget is in the first place. A budget is a structured set of intentions for the money in your business.
Read that again. (Did you read it twice? Okay, then proceed.)
Whether you write out a budget or not, you probably have intentions for the money in your business. Am I right? Perhaps you intend to invest in quality employees or to make twice as much in the next year.
A budget is a way to write down those ideas and find strategic action steps to make them reality.
Does a Budget Make a Difference in Financial Growth?
Have you heard that the intentions you write down are 42% more likely to happen than the intentions you merely think or speak? It's true. Following that line of reasoning, if you could give yourself a 42% higher chance of making twice as much money in the coming year, wouldn't you want to do that?
A budget is how you translate fiscal thoughts into action. First written action, and then actual action, because what you write down holds you accountable to stick to a set of clear action steps that make the desired outcome far more possible than when the dream was just a dream.
This is invaluable for your business.
What Goes Into a Budget?
Now you might be wondering, "What do I include in a budget?" The answer is: everything. Everything from fixed expenses that you cannot change, such as your internet subscription, to how much you project you will spend on materials and what you would have to sell in order to turn the profit that you want.
This is just one reason a bookkeeper is an irreplaceable asset in your growing business. Most business owners, particularly new ones, won't be able to think of everything they'd need to catalog to draw up an accurate and useful budget. An experienced bookkeeper will.
Fun Homework: Let's Talk About Everything You Want Financially
Here's your assignment: Grab a pen and paper, and write down some of the intentions you have for your money in the next year, three years, and five years. Where do you want to be personally, and what do you want your business to look like (in terms of revenue and profit)?
Once you have all your intentions down, ask: Do I know how to get there right now?
If the answer is "no"—or the answer is "yes" but everything you'd have to do feels overwhelming without help—then you want to get your free one-hour consult with Watch My Green today. You can't get to where you want to go without a roadmap. You don't have a good roadmap if you don't have a budget. And you may not have a very accurate budget if you don't have a bookkeeper.
So let's get our coffee date (or video chat date) on the books. Schedule your consult now!