Money In. Money Out. (Budget Template Included)

Hi everyone. Amber McKew with Amber McKew.com here. And I am so glad that you are here hanging out today because we are talking about a very important topic when it comes to how you run your business and that topic is money. If you've been hanging out over@ambermh.com Lately, we've been talking about this the last three or so weeks. And you may know because I've been saying it over and over again, that businesses who create a revenue plan grow three times faster than those that don't. That's an amazing statistic. So this is definitely something that you want to pay attention to if you want to grow three times faster than your peers and your competitors. Last week specifically, we talked about a budget and the importance of having a budget for your business, a financial plan. And today I wanted to walk you through exactly how you can set up that budget. And if you know, like, oh, I know how to create a budget, no big deal. Just be awesome if someone could give me a template for this template below. There's no reason for you to create this for yourself if I have one that I can easily link you to. So feel free just to go straight to the link below and grab the budget template to start implementing it and using it in your business. And if you want some additional guidance on, oh, what do I put in this budget? How do I really set it up? How's it going to work? Feel free to watch to the end of this video and I'm going to walk you through it right now. I would love for those of you who are not going to stick around, give me some comments, let me know how this works for you, let me know what other tools you'd like to implement in your business and I would love to create them for you. Thank you so much for being here. And for those of you who are going to stick around, we are now going to move on to budget creation. All right, here we have the start and the shell of our budget. So what you see up top, just to walk you through this, is where we're going to start to enter our revenue numbers. Revenue is money in. It's the money we're making for selling products or services and the money we receive in exchange for delivering those products and services. Down below, we've got our money out. This is where we are going to list our expenses, our planned expenses. And then at the bottom here, this spreadsheet is already set up to pre populate your profit number, the money that you make in your business. So up Here you can either choose to list the revenue that you will make service by service, or you can choose to list all of your services all in one. I would recommend that you break out those services at some point. If you're just getting started, feel free to list them all in one. But the more clear you are on where your money is coming from, the better. So let's say you are teed up to make $5,000 revenue in your business in January, February, March and April. And you can continue this through to the end of the year. Just going to stretch out that cell a little bit so the full number fits. When you see those number signs pop up, that's what's happening. Okay. And you could continue to list those services here, but for purposes of this, we'll just leave them all in one for now. Then below you will list your planned expenses. So for hosting, you could anticipate that this is going to cost you $10 a month. And for January and February, you actually already know this information. So you can just plug that right in and forecast it through the end of the year. And if you want that just to forecast out, you can click on the cell and a little box will show up and you can just drag it out to the end. And this is set up so that your full year of expense will sum at the end here. So you'll have your two 2013 planned hosting expense is $120 based on this budget Graphic design, maybe you're going to get some new buttons made in May and that's going to cost you $300. And you are upgrading your Google apps in August and that's going to cost you $5 a month. So we're planning that out that in our budget. Email management. Email management system like mailchimp or potentially infusionsoft, they're free to paid offerings that can go here. These are just some examples of some things down the side here that you might want to put in your budget. Legal expenses. If you're gonna meet with an attorney and get your LLC set up, you would add that when you plan on doing that. I'm just gonna stretch this out also. Whoops. Okay. And that sum didn't show up there. So if you ever need to recreate this to create the sum formula, you just type equals sum, open parentheses, you scroll over the cells that you want to sum up, close parentheses and hit enter and you've got your total there. Okay, now next up, let's finish this out. Bookkeeping and accountant. Oh, you know, I don't Think I'm going to hire a bookkeeper yet this year. I'll probably have someone do my taxes, though, just to give you a sense of how you might think through this. Oh, maybe you've decided to use FreshBooks as your accounting system. You're going to start that up in June, stretch this out. And you could list other expenses that you may have that are personal to your business. You would also list your people expenses here. So if you're going to hire someone to support you with public relations later in the year and they're going to help you for a couple of months on a retainer basis, are you going to hire someone to help you manage your business operations? You could put that in there. Oh, and you love a vh. Yeah, put that in there. You want to pay yourself. And actually, let's say you do that all year, please, ideally. And then you can enter your tax expenses so you can plan for your quarterly taxes. You can set aside money throughout the year for that. And as you can see, these cells also need to be stretched out because those number signs are showing up. We don't quite have enough room. So we're just going to stretch those out a little bit. And you can see here that you are profitable in your business. So with this budget, the money that you are making based on this budget compared to the money that you are spending in your business, you are running a profitable business. And in fact, you might want to be paying yourself a little bit more. And we can talk later about some guidelines when it comes to how much you pay yourself and how you sort of think about those numbers. Actually, with these numbers, you'd be more profitable. And what's happening here is your total income is summed up using that sum calculation we just talked about. Your total expenses are summed up. And then your revenue minus your expenses gives you your profit. And there you have your budget for where you'll be spending money for the balance of this year. And it's all summed up over here in your 2013 column. And your revenue compared to your expenses for the year is profitable. You are in the black. Your numbers are positive, so you're running at a positive profit, not a loss. So congratulations, this budget works. Hopefully yours works as well. Love to know what you think about this in the comments. If you have any questions, any concerns, anything at all, please feel free to reach out. I'm happy to help and would love to talk with you about your success in creating your budget. See you in the comments.