Dotty Scott walks through small-business budgeting: use past spending to estimate phone, internet, rent, and utilities. Calculate profit as revenue minus expenses. Then pick your move: raise prices, add programs, or cut costs to hit your target.
Okay, so let's say back to the budget. So if you don't like the outcome, that when you take all the money that you're guessing and estimating, if things go the way— this is how much money I'm going to make, and I know my expenses, because you look at what you spent last month, that's a great place to start, or last year if you have— if you've been in business for over a year, are you spending more money or or the same amount on your phone bill. Okay, there's my number for the year. Internet, you know you're gonna spend money on that. Rent, utilities. You go through and you look at what you've actually spent and then you just decide, is it gonna be the same as last year or do I need to bump up the number? So now you look, revenue minus your expenses is your profit. If it's not a high enough profit for you, Now you get to choose, okay, what actions can you take? So it's A minus B equals C. You either bump up your revenue, cut your expenses, or a combination of both. Can you raise your prices? Can you add a new program? Can you— what expenses do you not necessarily need, or you can negotiate a better deal so that your expected profit is a number that you like and that you can live with?
