Friday, January 20, 2012

No Budget..No Joke!

No Budget..No Joke

I have just completed my budget for AnyEvent. This was hard to do, but had to be done. I sat down and went over everything I spent I never REALLY had to do it before, but I begin to notice that something’s were not working with my household and business finances.  I was coming up short (lol) LITERALLY!!! and I didn’t know why.
So I sat down and begin to make some review of some of the receipts that came in and went out. I begin to notice a great deal of spending but no incoming to match. I was like WAIT! RED FLAG.. LITERALLY. Yes I was working hard, and had some successful events in 2011, but this was crazy!!!

When you are in business for yourself there are two things you don’t want to do:
  1. Spend more then what you make
  2. Work two jobs while trying to run a business.

Well after I notice all the redness on my budget page, after crying for about 3 minutes and after praying for God to help me (lol) I decided to go to my accountant and blame this on no business so it won’t look my fault. I had the nerve to tell him “this didn’t happen; this fell through” bah…bah…bah. He then looked at me in return and said “Yea right”

We talked for about 3 hours and made some serious changes to my budget for business and home. The one important thing he said, you can’t spend when you don’t have anything to replace. WOW, seriously (lol).  As he explained, a business budget is really the roadmap that will help and guide me through my initial startup period; it will also orient me towards the right goals for the life of my company. It’s going to take a lot of time and work initially, but the time I spend planning can have a huge effect on how my business will operates.
To build a successful business, you need to create a specific plan of how much money you’ll need to spend to get started, how much you’ll need to operate, and how long it will take before you can start to make money.  Those are the three most important things to know. In other words, if I’m not making I can’t spend (lol).  We sat there and created two spreadsheets, one for home and one for AnyEvent.  We looked at what was coming in and going out. It was frightening to see the numbers, but I thank God for helping me before it was too late.  He begins asking me questions:
·                     How many events do you want to plan for 2012? Be realistic
·                     What are the direct costs of the events - ie costs of marketing or staff to make this happen?

There were other questions he asked me as I begin to see the light!!! We created the budget, I cut a lot out and I begin to start making some of that end of the year marketing material I purchase do some work.
Event Planning is my passion, as my Pastor, Dr. Tony Evans once stated, “you know your passion because you would do it for free”. I love event planning enough to do it for free, but that was not Good’s intention. So with that said. I’m now on a budget for me and AnyEvent, I’m making some changes and I’m looking at my company with a new view. In order to be success, I have to think successful, and that means making changes were they need to be made, and that’s in the budget!!! I’m struggling to accept it, but the budget has and will be best for me and AnyEvent.
Is your company operating on a budget? Does it need to? Did you have to make changes? I would love to hear from you on how your business is surviving in the area of finances. Never know, you may just help some one. 
Until next time.. The Business Woman

Balancing my budget! 

1 comment:

Darcy Grubaugh said...

I agree with you. There really are some instances when one would experience a shortage. That’s why it’s important to establish a specific budget monthly for your business, and strongly observe the flow of your finances. Also, see if you are making unnecessary expenses, and find out how you can mitigate those. And as much as possible, create separate bank accounts for your business and personal savings, so that you don't end up overreaching or overestimating. Thanks for sharing!

Darcy Grubaugh @ Quantum Buyers