CREATING A BUDGET

It’s not complicated to figure out and it doesn’t take a math or accounting degree to understand, create, and follow a budget. And it’s a great idea to do this yourself instead of hiring somebody to take care of it for you when you first start out. Why? Because that gives you a better handle on how the numbers work. You will KNOW what’s going on instead of taking someone else’s word for it. And—you’ll be able to guide them in setting up the kind of reports that will make sense to YOU instead of having to read piles of printouts that confuse the hell out of you.

Tracking what goes out and what comes in grounds your business decisions and actions in reality. When you realize the true value of your time, you’ll eventually recognize the value of hiring a bookkeeper or CPA. But there’s no substitute for the self-education you’ll get by learning to make and follow your own budget in the beginning.

Start with a simple Microsoft Excel spreadsheet—even do it with pencil and paper if you have to. Make rows for the months and columns for income and expenses. Fill in the blanks with everything you spent and made for the last six months. Based on your business plan, make projections for what you expect to spend and make for the next six months, making sure to have columns for:

Gross revenue—where your money is coming from.
Expenses—where your money is going.
Net Income—how much is left for you.

Take a look at what you have. The key is to make EVERY expense accountable for generating a measurable return. Figure out which expenses are essential and which are not, and cut the fat.

Hang your budget where you can see it and revisit it regularly. Schedule a weekly meeting with your team (even if your team consists of just you!) to review what’s being spent relative to what return is being generated on each expense. The 30 minutes a week you spend reviewing your budget could save you thousands and keep your business from becoming a casualty!

When you and your entire team are committed and accountable to the business battle plan and the bottom line, your business will be turbo-powered instead of driving aimlessly. You’ll be purring down a superhighway, eyes on the road, hands on the wheel, and with a world-class GPS keeping you pointed in the right direction.

Kick Ass, Make Money & Have Fun Doing It!

Craig Zuber

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Our purpose at Zuber Group Real Estate is to create a compelling, fulfilling real estate experience every time we serve a client. Our website is just one of the services we offer. For the most advanced MLS search in the Treasure Valley visit us @ www.zubergroup.com

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