Our last blog had input from Niedra Johnson, a CPA and CFP about mistakes small business owners make.
One item we discussed was how important it is for a soon to be small business owner to do a PERSONAL budget BEFORE starting the new business. I know, I know, budgets are boring. But this is easily done, and is important so you know better what to expect financially. If you put a personal budget together prior to starting your business, then you will know what you are currently spending each month on your current expenses. Then you’ll know how much you need to pay yourself from your new business. Now, since most businesses don’t actually turn a profit for a while, you probably won’t be able to pay yourself much if at all starting off. But it’s important to know what you need to survive.
As you get your business rolling, you’re going to have business expenses, and if you haven’t figured your PERSONAL budget, then the BUSINESS expenses/budget could take you under financially.
Know what your personall, current outgo is now, and you can better manage what you need to bring in from the new business to quit your current job and take on the business full time.
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