Why your business budget doesn’t need to be perfect
Let’s get real. Nobody likes making a budget. Business owners especially don’t like doing it. It’s one of those things that I tell my clients they need to do, and there is nearly always pushback.
But honestly I can’t really blame them for that. Isn’t a “budget” just a way to see clearly on paper all the things you can’t afford?
This is what most people think when they hear the word “budget.” And when you’re an entrepreneur and you’re responsible for every aspect of your money, that adds an additional layer of emotional complication.
But, a budget can actually change your business and your life for the better.
Now, I’m not talking about the budget itself. Making a budget doesn’t change your life. It’s following through and taking action on those plans that make a world of difference. It’s getting past avoidance, looking at where you really are with money, and starting a conversation that changes the game.
Here’s what I mean by that…
To reach your business and financial goals, you need to know where you stand now. And once you create a budget for your business, it’s ALL out in the open. You get to see your business summed up in numbers. You see all the details about income, spending habits, everything.
It’s the getting past the judgment about all those things that can be the hard part.
Most of my clients who are struggling with cash flow don’t need another “3-step plan” to create a workable budget. They need to have a non-judgmental conversation with someone who understands not only how money works, but also the money and energy connection.
BUT, once you let go of avoidance, take a deep breath, and take a good look at where you are now, you can make a plan to get to where you want to be. That’s what creating a budget can do for you!
So if a business budget is so powerful, why don’t more business owners make budgeting a top priority?
The answer to this one might surprise you…
Believe it or not, many times when people create their ideal budget, they don’t follow it. That might sound crazy, but I’ve seen it happen more than you might think! So why does this happen?
People think they have to have an “ideal” budget in order for to work. So they create what they think is the perfect budget, and realize that it’s not something they can keep up with, and they quickly abandon the whole thing.
But the truth is that your “perfect” budget isn’t always realistic for where you are now. It’s not about following the budget you think you need to have. It’s based on where you are NOW.
Let’s get into why right here..
When you create a new budget, it’s based on HISTORIC data. That means it’s not telling you how you should spend, it’s telling you how you’re spending NOW.
It’s about bringing awareness to your current spending habits, not implementing a rigid framework you’re forced to stick to for the rest of your life.
That’s why creating an “ideal” budget for your perfect situation isn’t the goal here. It’s about creating an action plan for what you want within what fits into your current reality. This allows you to start moving toward your goals now, and adjusting your budget along the way.
Once you create a budget based on where you are now, you create the path to your dreams!
Here are a few reasons why budgeting can change your business and life, and why it doesn’t have to be “perfect” for you to get started…
A budget is a perfect place to start a conversation about your money.
This could be a conversation with your business associates, your partner, or yourself. Having clear communication about money is one of the most overlooked components of financial success, because it helps keep you from avoiding your money. (I talk more about this VERY important aspect of finances here.)
A budget reduces stress in your business (really!)
Creating a budget might feel depressing at first. But the end you’ll free up a lot of time you used to spend wondering, worrying, and creating “what if” scenarios in your mind. You’ll feel more in control without that stress of the unknown.
A budget shows you what your true priorities are your business.
There is nothing quite like seeing where your money actually goes as opposed to where you think it goes! It’s an eye-opening experience that shows you what you really value the most in your business. When you see this in real time, it shows you not only where your money goes now, but it also gives you the opportunity to make changes to support your real goals.
A budget helps you create boundaries against unintentional spending.
Once you know what your budget is, you create boundaries with your money, which has many positive effects. For example, you don’t have to stress with every purchase. You don’t have to feel heavy every time you get a spontaneous invite and not sure if you can swing it, because you’ll know if it’s in the budget or not.
The end result? You boost your cash flow, and channel it toward what moves you closer to your goals. The boundaries help you see the bigger picture, and become more discerning about where your money goes.
This can help boost your cash flow and channel it toward what will move you closer to your goals. Rather than spending without a real plan, a budget helps you see the bigger picture and be more discerning about where your money goes.
A budget helps you direct excess cash flow in a positive direction.
Have excess cash flow? A budget will help you use it wisely. With a budget in place, you will know how much and where to best direct it without feeling like you’re losing your ‘safety net.’ You’ll direct that excess cash flow with more intention.
So the bottom line? Budgets many seem restrictive, but they actually help you create freedom.
But nothing good happens until you know where you are NOW.
This is the most important step of all!
If you’ve been resisting creating a budget for your business, you’re NOT alone. But it’s actually easier than you think, once you let go of the stress and start seeing it for what it really is…the first step to the business and life you really want.
What do you feel about budgeting, and what questions do you have? I’d love to know…
AND, until next time…
Love, light, and MONEY, Honey…
Kaylee