Budgets

Oh my Budgets...
a big word, a nasty word but a helpful word

In order to run a successful business we must set a budget and stick to it!
consider consulting an accountant if you need to
Figure out how much you can afford to spend each month out of your personal money!
once you figure out how much you can spend then you need to
figure out how much you want to earn each month or how much you need to make in order to have or maintain your lifestyle!
once these are figured out then you need to figure out how many items you need to make and list or stock each month how many you need to sell each month
A budget is a hard thing for me to keep I have created a budget for the new year 2010 I think it will help to see the big picture

here is an example just an example please do not take this as literal

The month of January you have $400.00 personal money you can spend so take $200.00 to buy supplies the other 200.00 can be used to list,package, any other expenses you may have

(it will help if you list all of your expenses per month so you know how much to save for expenses)

You sale cards for $4.00 a piece
you want to make 500.00 per month
you will need to make and stock 250 cards in your shop that will be $1000.00 worth of stock
and promote promote promote
hopefully you will sell at east 125 cards and make your 500.00
but lets say you only sell 75 and make $300.00 so you are short $200.00

So the month of February you have $400.00 spending money you will want to take $200.00 and put it with your $300.00 made in Jan. to have your $500.00
Spend the remaining as follows, $100.00 for supplies and $100.00 for expenses

This should start to decrease as you build your store if you can keep on budget and keep this money separate from personal money!
Until next time!