3 Common Budgeting Pitfalls New Entrepreneurs Fall Into

Man covering face with handWhen it comes to making a budget, good intentions only go so far. Find out how to keep your budget realistic.

If you’re a local artist or craftsman that’s turned your passion into a business, you’re quickly finding out the reality and needs of budgeting. Here are 3 common errors you’ll want to avoid:

1. Not Thinking of Upcoming Costs
With all you have on your plate today, it’s hard to even think about tomorrow let alone what’s coming up in the next 6 months. But planning for those things today will give you so much more peace in the coming months. Think about demand for your product or services in the next 6 months to a year. What’s a slow time you have coming up? What’s a peak time and how do you budget that out to cover the slower time. For example, if you’re a wedding photographer, you can’t plan on being busy in the winter so, how do you make income from the wedding season cover the offseason?

2. Not Having a Specific Goal
Hoping to make more this month than last month is not a goal. How much more you want to make is a goal though. When you exhaustively write down all your costs and have a cushion for unexpected costs paired with specific goals to increase revenue, you’ll get much closer to achieving them than you would without.

3. Setting It and Forgetting It
Managing a budget is an active ongoing exercise that evolves overtime. Setting up a spreadsheet and walking away is useless. You have to be able to adjust and improve the budget in the moment on a regular basis. Set aside a time every month to do this and you’ll see your money grow.

Remember to always consult with a professional financial advisor. You do your thing you’re good at doing and we do ours. Let’s partner together today!

Do you have the support you need to manage your small business bookkeeping? Contact us to schedule an appointment to speak with a local small business advisor.