Business Budgeting

Make a Money Plan with our Business Budget Template

What happens when there’s no more money?

Standing in the middle of the produce section at the beginning of the week’s grocery trip, Beth stopped to double-check the family bank account. 

-$500.

What do you do when the money is all gone?

Budget…A Controllable Plan

The Enclave Way’s goal for you is that you never have to worry about that question. 

Setting up a budget for your business gives you a way to plan for how your business money comes and goes.

You don’t need a degree in finance to manage your money well. Beth never thought of herself as strong in numbers, but she grew her money management skills through perseverance and self-teaching.

How to Start

When beginning, it’s easiest to use a blank template to draft your budget. The basics of budgeting require you to look at expenses as compared to income. 

Write down every aspect of money for your business that you can think of. Money that comes into the business. Money that leaves the business. Every penny accounted for. 

To help you think through everything, use our template.

Programs to Use

When getting started, writing everything down with a pencil on paper can be helpful to see and manipulate the numbers easily. Often, the simplest way is the best way to eliminate barriers and get it started.

However, you likely won’t track your business’s budget using pencil and paper forever. 

Soon you’ll realize that a lot goes into business finances. Budgeting programs and automated online systems are designed to help relieve the burden of managing every penny of an organization.

Quickbooks and Mint.com are a couple of popular options for tracking business finances.

Use and Implement

Once all the numbers are on paper (digital or physical), it’s time to exercise discipline and follow your money plan.

Post your budget somewhere visible to remind you and hold you accountable. Communication is key. Every member of your organization should know their responsibility regarding the finances of the business. 

Many businesses don’t make a profit until months – or even years – into operation. If this is the case, make sure to have savings and a plan. 

A financial timeline can help you keep your business’s financial life on track. Use our business startup financial timeline and suggestion checklist to help.

Reviewing and Adjusting

Much like goals, budgets need to be revisited regularly. Scheduling time to review your budget will help your business stay on track. It also gives you insight as to what adjustments are needed.

At least monthly, analyze expenses and income. 

• Are there unnecessary expenses?
• Are there alternative investments that could produce greater returns?
• Is there enough income to meet expenses?
• How could income be increased? 
  • Higher prices?
  • Increase volume?
• Do growth projections estimate the business will be making a profit by the intended time?

Depending on the answers to these questions, you may need to make regular adjustments to your budget. It could take up to a year to get a good idea of what your business’s budget should look like.

Proactive vs. Reactive

There are two general ways to run a business. Proactively or reactively. Usually, there is a blend of the two approaches, but being proactive in business management is usually more effective than reactive. 

Reactive money management asks:

• Where does the money go each month?
• How much money do we have?

Proactive money management says:

• We plan to earn this much.
• Our expenses will cost this.
• We will save for these specific expenses in the future.
• This will be our profit. 

A budget is the single best way to be proactive in business finance management.

The best way to tackle this is… start!

Budgeting can be daunting. Money can be stressful. But don’t let that be a roadblock to your success. You have to start somewhere.

As we tell our Mastermind Alliance members, check your ego and perfectionism at the door. Be ready to ask, learn, and grow. This is the time to start! Print extra copies of the budget template, write down your first draft, and get excited about getting your business finances under control!