COVID-19 brings so much uncertainty. Between health concerns, social distancing, and economic downturns, how we live daily is changing. For some, this change happened overnight. For others, it’s more of a slow build and there’s time to prepare (if they want to). Many small business owners, especially those who depend on in-person interactions such as brick-and-mortar retailers, restaurants, and performers, literally cannot make money due to restrictions on social gathering.
In order to survive, look at what you sell, what your customers will buy, and your delivery method and make sure all three are COVID-19 compatible.
There are a few ways to handle this, and smart business owners will have multiple plans.
The short-term plan is what to do immediately. Determine your burn rate: how many months can you stay in business without bringing any money in? If you have cash reserves, you might...
We’ve been having a lot of conversations recently around budgeting and the frustrations people (ourselves included) experience with budgets. Because we believe in working with yourself, not against yourself, it’s important to acknowledge how difficult this process can be and then take some time to learn more effective ways to build a budget.
First of all, what exactly is a budget? It’s basically a plan for your money that has 3 main components: income, spending, and a period of time. A budget lays out how much money you expect to bring in & spend during a particular time period. It’s important to have this information so you can plan ahead and not overspend in your business.
To make a budget, you will need to:
Gaining confidence in your money management is about more than just making money. You also need to know how to wisely spend money. Whether you’re making $20,000 or $20,000,000, you start at the same place - establishing a baseline. Look at your current financial situation, without judgment. Where does money come in? Where does it go out?
Once you know these two things, you can begin to make a money management plan. Look for the areas you can save money – places you can stop unused subscriptions or source cheaper supplies. Then look for the areas you can make more money, without spending any more. Maybe you can sell ad space on your website, or monetize a blog or video channel. Finally, look for the places you can leverage your money. Can you spend $200 a month on a bookkeeper, freeing up your time and energy to bring in another $1000/month? That’s money well spent.
As you make this money management plan, include a savings account. You have to make saving...