As an entrepreneur, especially as a solopreneur it is critical to have a reliable budget. Simply defined a budget is “a process of looking at a business’ estimated incomes….expenditures…over a specific period in the future.” If you do not have a clear idea of how much things cost as well as an idea of how much you will make, you will definitely run into financial difficulties. 

Earlier I wrote a more detailed blog about key budgeting practices. However, simplified below are 5 steps to implement if you are going to move your business forward.

5 Steps To Creating a Reliable Budget

1. Monitor your Marketing Money. 

It is important to monitor the amount of money you are going to spend on marketing, especially when starting out. Furthermore, it is critical to measure the return on investment. So before going crazy on marketing campaigns consider the following questions:

• Where did your business come from last year?  
• What worked and what did not work?  

Then focus your marketing dollars on what works “best” and not just what works “well”.

2.  Put Money aside in the Good Months

Many small businesses are seasonal.  Even if they are not you may find there are periods of time where you consistently make more than at other times.   During those good months, or peak times put money aside to get through those slower times.  Resist the temptation in the good times to go on a spending spree.  First put some money aside and keep your perspective.

3.  Stay within your limits

It is so easy to push the financial boundaries you have set for your business.  This is especially true if you start to compare your business to others in the same field without considering their journey.  Best to simply be professional and practical. 

4. Save where you can

Take a close look at all the expenses and cut costs where you can.  Can you find a cheaper place to host your website?  Can you go on a different split arrangement with your broker and keep more of your commission? Perhaps look at ways to save on house or car insurance. Find less expensive alternative and eliminate those things you are not really needing.

5.Real Estate Agents Get a budget spreadsheet

If you are a realtor, a spreadsheet allows you to instantly see the impact to your bottom line when you change any of the numbers.  I recommend you create your own spreadsheet or check out our free budgeting spreadsheet which is offered by Moneyledgers here:

.**FREE Budgeting Spreadsheet   Click here to download – for instructional video Click here

Related Resource to Save You Money ** 15 Best Free Real Estate Apps: click here