Does your handmade or creative biz need a budget?
Maybe you just finished up your bookkeeping for last year, looked at your numbers, and were appalled at the amount of money you spent in certain categories – Inventory perhaps?
Maybe, you looked at your ending inventory balance, discovered it was close to $2,000.00! Did you think “HOLY CRAP!” my spending needs to go on a diet. I think I need a budget!
Budgets & Goal Setting. Sexy, right?
Nope, not at all. But both are super helpful when it comes to making a money roadmap for your handmade or creative business.
What IS a budget?
A budget is more than:
- just saying “NO” to buying that wonderfully soft, squishy yarn that you see on sale
- signing up for that course that you’ll probably never do anything with because you just don’t have TIME
- or, buying that piece of software that someone said “you absolutely had to have it”
A budget makes your money work for you.
The money you make from selling your patterns or finished items has a purpose. Those dollars have a job to do that includes:
- Putting money into your pocket (hint – this should be your #1 goal).
- Keeping your website up & running.
- Investing in courses that you actually need.
- Paying for craft fair booths so you can actually sell your finished items.
- Maybe some advertising so people actually find you and buy your patterns.
- Buying a big ticket item like a new computer, a spinning wheel, a loom.
So, here’s what you need to do initially.
- Drill down on the amounts in those high dollar spending categories.
- Ask yourself:
- Did I really do the work in course X?
- Have I used software Y?
- If it’s something that you pay a monthly subscription for and you didn’t use it – CANCEL THAT SUBSCRIPTION!
- Really evaluate where your money went last year.
- Evaluate where your money needs to go this year.
Once you’ve done this, next week we’ll talk about actually creating a budget.
Unfortunately, many of us think the answer to making money is to sell more, often times it’s really about spending less or spending more wisely.