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

Your Creative Biz-An Intro to Budgets

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?

You looked at your ending inventory balance. Maybe, you thought "HOLY CRAP" my spending needs to go on a diet - I think I need a budget!

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.

And intro to budgets. Evaluate where your money went last year and where it needs to go this yearSo, 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.

You looked at your ending inventory balance. Maybe, you thought "HOLY CRAP" my spending needs to go on a diet - I think I need a budget!

4 Comments

  1. […] you’ll want to create a budget that includes all of your projected costs for the first year. FYI, some businesses don’t see […]

  2. […] Part 1, we had an introduction to budgets and how a budget is about more than just saying NO to that […]

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