Budgeting for Business

Budgeting for Business


(upbeat music) – Yeah, so I do use the same techniques and some of the same steps
in the budget by paycheck method from my personal
life in my business. What I learned and what happened was all of this amazing success that I saw in my
personal life with my budgeting kind of trickled over
into the business side. I knew as a business owner, I did not wanna rely on
debt for my business, and I never wanted to burden, say, James, my son, with business that god forbid if something were to ever happen to me, and I really didn’t
want the future success of the budget mom to be reliant on debt. So I still track all of my business spending manually pen to paper. Each expense is written down, I track all of my income from
all of my different sources. I categorize things out much like I would my personal budget, but I do one thing very, very
differently with by business, I budget monthly. So paycheck budgeting in my personal life is where I’ve seen the most success. But that’s really hard to incorporate in a business structure because you’re not getting paychecks with your business say you would like your personal life. And things are structured so much more easily on a monthly format. So I do things monthly there. I do use one electronic program
on my business budgeting, which I use QuickBooks, and the only reason I use
that I because my accountant kept getting mad at me for
bringing in my paper workbooks and my handwritten notes. He’s like, gosh, Miko, there’s got to be a better way for this. And so, I do QuickBooks. I enter my, it’s simply me just
entering my transactions and the program categorizes my spending and that way it’s easier
for my accountant. But those are just some
of the differences. But very much, it is very, very similar to
what I do in my personal life. If you have a small business, number one priority is you should always keep your personal and your business finances separate, separate business checking, separate savings, and your goals should be separate. Your goals for your business and what you have in mind there should be 100% different than
your personal goals. There should be a straight
wall between the two. For accounting and auditing reasons, but also I think for me, mindset reasons. It’s really easy for things to get commingled in your brain, and all of a sudden, it becomes very overwhelming. But I think that if you
have dependent on debt and you’re just starting
out as a small business, I would tackle the question, how do I become successful and what does the future
of my business look like if I didn’t have financing as an option? You really have to be a
in place where the success of your business does not rely on debt. And that was really important to me. So there either has to be re-strategizing, whether it means that you’re trying to keep up for product demand and you don’t have the finances to do it, you scale down on product demand. It’s just what you have to do. You have to look at what’s
realistic for your budget even if that means scaling back and growing at a pace that’s realistic to what you can afford. (upbeat music)

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About the Author: Oren Garnes

9 Comments

  1. Can you do a video on how to categorize business expenses? This has been challenging for me as a new business owner. I’ve asked other business owners how they do this, like aestheticians and hairdressers and the feedback is very grey.

  2. Hands down my favourite personal finance YouTuber! Your content is invaluable. You're so authentic and relatable. ❤️

  3. Oh, yes! I was hoping to see more biz content from you. I would love a small biz version of the budget workbook!

  4. My fave financial youtuber!

    She makes saving FUN!

    I’m actually excited to save! How weird is that say? 😳

    Thanks for these great videos 💓

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