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
Budgets

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.

Until next week, your in yarn & numbers

Nancy 

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!
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3 Comments

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  2. […] In Part 1 – we had an Intro to Budgets […]

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

  4. […] Last week we talked about how a budget: […]

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