Budgeting 101

10 Aug Budgeting 101

There is a word that many fear and avoid throughout their life. It is a tool, meaning it’s helpful when used correctly. So despite its negative connotations, budgeting is necessary for us all, big and small businesses alike. 

Every blog, video, or mentor will advise you to KNOW YOUR NUMBERS. Knowing what to charge for your services or products will predict how much money is coming in and affect how much money goes out. It was the same principle when you were an employee: you know what you could afford based on the money that came in on your paycheck. If you were a child of the 90s or early 2000s, writing checks was the primary method to pay bills. Therefore, balancing a checkbook was necessary and an early form of budgeting. Now, with everything being electronic, budgeting seems foreign, or something accountants should handle. 

The best marketing strategy cannot help you manage your money. There are tools and people available to help the numbers make sense. The future of your brilliant business idea is not possible without knowledge of your balance sheet. Shopify, a popular e-commerce website, offers these benefits of a budget:

• Spotting opportunities to increase your revenue
• Identifying areas to cut spending
• Predicting slow months to avoid debt
• Reinvesting untouched funds
• Making your business profitable
• Keeping your financials in order for possible loans or investors

We are your champions for success. The price of everything is rising, but our blog and youtube page are always free and full of essential information. Knowing Your Numbers: Business Finance Basics featuring Kieva Amante provides simplified directives to ease any financial anxiety or stress.  One tip: Numbers Drive Your Business (balance sheet, cash flow, income statements, invoices, and top expenses). These terms are probably familiar, but Kieva expertly defines them and how to effectively use them. 

After you have reviewed the video and applied the education to your business, you can confidently speak to a banker. Our post, How to Build a Relationship with Your Banker, will make much more sense once you watch the video. Money is significant, vital, and great to have. When money is translated into finances, people cower in fear. Knowledge is power. Embrace your bookkeeping records so you and your banker can establish a positive connection. Allies make being a small business owner less stressful. Our Mastering Money Boot Camp is another tool that takes builds your financial literacy. This virtual classroom will help you move from novice to expert. And as always, sign up for our newsletter or reach out to see how Go.Be. can support you on your entrepreneurship journey!