Your Home Business Budget Foundation
Why a Budget is Important. Let it be your guide from beginning to end.
Starting your own home business is a very tricky proposition. Starting your own enterprise is exciting, but it is also inherently full of risk. Enter discipline. Unless you get yourself going on the right foot, then the chances of achieving success are very small.
Conversely, as long as you have the right foundation, and keep working on that foundation, success is almost an automatic thing. It is vital that you run your home business on a strict budget, if you aspire for long term success. Strictly budget your time and your money.
As little as one hour a day, everyday, is enough to make your personal business get better everyday and grow steadily to keep your confidence up. Avoid distractions.
One of the most important parts of running your business is operating on a budget of money and time. Every ad and every supply and tool you buy must earn the value put into it. This is a golden rule that can make you successful as you are going to be at any business.
Many men and women, mostly unsuccessful ones, prefer going with the flow rather than with actually setting goals and budgets. For the most part, this attitude is a mistake. Unless you have an incredible memory and unnatural clear sightedness, planning for both the present and the future is a prerequisite to success.
No matter how you define that elusive concept. Remember, no sloppy ad, supply or equipment buys. Check everything out scrupulously before putting your hard earned funds into it. Always shop for better prices and quality with every purchase you make.
Because this article is about home businesses, we will begin by defining success as the growth and eventual profitability of your particular business. By growth we mean that the business will expand, hopefully outgrowing your home and eventually participating in the corporate arena or whichever one you feel comfortable to work in.
By profitability, we mean that the business will become a cash generating machine, so much so that you attain financial freedom, and never have to work a single day again for someone else, if you do not feel like it. You will be your own woman or man.
This article argues that in order to achieve growth and profitability, discipline is needed, and plans must be made and acted upon. I cannot harp on and emphasize this enough to you.
Crafting your budget
One of the most important plans you must conceptualize is that of your budget. Many businesses, even if they have great ideas and wonderful products, still fail for lack of proper planning and efficient allocation of resources. Do not let this happen to you. Only a home business on a strict budget can ever be truly successful.
First, make it a habit to write down, both what you earn and what you spend, on a daily, monthly, and yearly basis. A common stenographer notebook will be perfect for this. Make a different page for every expense. Every expense and every sale must be recorded so you know where you are everyday.This is the least that you can do.
Look over what you have written down and you will easily see the areas that can be improved upon, especially in the expense column. It is astonishing how many expenses we never notice until we get them down in paper. As the business grows larger, accounting knowledge might be needed. If you have neither the time nor the inclination to acquire the knowledge yourself, find someone who does.
Second, analyze the figures and determine the areas where you can control costs, and where you should add capital. Every business has areas that generate above average returns, as well as areas that under perform. As much as possible, redirect your resources to the projects and ideas that give you the most return. You will quickly start to learn this from experience.
Many years of experience have frequently given me the positive experience of having the lowest cost item or ad working for me best.
The great secret here is to, are you ready? Shop around for the best buy and do not let your emotions run wild on you when you read or hear presentations that have wild claims or will not give you the whole detail story until you pay them first. Hah! Never do it. Give me the details or forget about it. You do not need to take unnecessary risks.
Lastly, stick to your budget. Never forget this. A plan not acted upon is essentially useless, and a budget not followed is as useful as a page of doodles. Once you have written down and finalized your budget, do not make any departures from it unless absolutely necessary. Always have a solid reason for doing so.
Be disciplined. It is the only way you will get anywhere. By running your home business on a focused budget, you are securing your future at a small expense to the present and a nice profit in the future.
James M. Lowe writes original articles, press releases, e-books, blogs and websites about home business opportunities.
http://www.contenttomarket.com/ArticleWriters/
Business Inventories: Checklist to Success
In business management, inventories are lists of the goods and material a company has available in stock. If a business does not have an inventory, it cannot be truly considered as a business.
Inventories provide a business with a comprehensive view of the properties it owns. In the broadest sense, inventories deal with the stock level of items it has for sale. But inventories also deal with the properties a business has that are not for sale.
These properties include office equipment, office supplies, warehouses, land properties, and other items related to the business, whether or not they are used in the day-to-day operations of such.
Manufacturing organizations have three categories for sellable items on their inventories: a) the raw materials/parts which are to be used in making products
b) the materials/parts which are already in the process of being transformed into finished products, and c) finished goods – the goods that are ready for sale, trade or stock.
For example, in a canning factory, items such as raw tin cans, the raw food stuffs to be processe are considered to be under category A of the above mentioned categories.
When these raw materials are processed, but are not yet finished – as in the case of food stuffs that are already canned yet lack the proper labels and price tags – they are listed under category B. When the product is ready to be sold, they are then listed under category C.
Financial accounting
An organization’s inventory has its advantages and disadvantages. The disadvantage of such is that inventories are counted as assets on the organization’s balance sheet. However, it also makes funds immovable when they might have been appropriated elsewhere.
Moreover, it costs the organization to have these assets protected. Inventories also induce increased tax expenses.
On the other hand, since inventories show up as assets in an organization’s balance sheet, they can be turned into cash through selling. Some organizations intentionally hold large inventories to bloat their apparent value on the market.
Businesses that stock too little inventory cannot take advantage of large orders from customers if they cannot deliver. The business therefore stands to gain from a proper inventory system.
Since the inventory shows a business’ capability to deliver goods ordered of it, the business may be able to adjust their inventory, increasing or decreasing it, according to market demand.
Why inventory?
Without a proper inventory a business cannot know what assets it has at its disposal. It also is blind to the quantity and status of the goods it may, or even, may not have.
For example, a business that does not have a proper inventory is asked to deliver 100 crates of its goods. Without an inventory, the business does not know if it even has that number of crates.
In the case of non-sale inventories, businesses are now able to keep track of equipment purchased and their status.
Too often, businesses with sloppy inventory systems do not keep track of their existing equipment. Without this, no one is accountable for equipment that gets stolen or damaged. The business ends up spending more to replace these equipments, when in fact, someone might be stealing from or sabotaging them.
Proper inventory keeping may be a painstaking, time-consuming process that leads many businesses to forego such altogether. However, without one, a business cannot operate efficiently, and properly.
James Monahan is the owner and Senior Editor of http://www.InventorySpot.com and writes expert articles about inventory.
Computerized Bookkeeping Is Fast, Simple, and Flexible
Every business needs to keep good records to ensure bills are paid, obligations are met and checkbook balances match up. Whether it’s a home-based business, a Fortune 500 company or even the business of running a household, well-kept books can really help guide a “business” in the right direction when it comes to keeping finances in order. More and more people are turning to computerized programs for keeping money in check. The reasons for this are many.
Computerized financial programs are becoming the way most business gets done for a number of reasons. Not the least of which, of course, are ease of use, simplicity in seeing the bottom line and ability to track actions as they happen. Combining online banking services with online bookkeeping has made managing the books even easier.
For home use, computerized bookkeeping is fantastic, especially when combined with online banking and bill payment options. Programs abound that help regular people keep their books as neat and clean as any big corporation’s and they’re used for a number of reasons, including:
* Ability to instantly update and have the program track bottom line and types of purchases. Some programs will even help separate out all charity donations and other tax deductible items for future use on tax forms.
* Quick way to see the bottom line. Computerized checkbook registers, for example, can instantly show a user how much they have, what they need to meet regular obligations and more. This is great for those who combine their use with online banking and bill paying methods.
* Better ability to see where the money goes. Clean and clear registers help users track their purchases and bottom lines easier. This is great for those who are living within a budget to help guide decisions about future buys and where costs should be cut.
Computerized bookkeeping systems are especially loved by businesses for the way they can simplify even a complicated business’ books. Computerized programs offer the following (and more) advantages for businesses:
* Ability to track expenses and income for different divisions while melding it all together into an overall budgetary plan.
* Quick and easy to see how money is being spent and even why.
* Ability to track trends in spending and income.
* Fast reports for a variety of things including expense categories such as capital outlays, salaries, benefits and so on.
* Easier earnings reporting. These systems tend to do all the calculations for a business, so running reports, getting projections and so on is simple and easy. All that really needs to be done is to purchase the correct program to meet a business’ needs and input the proper data.
* Simplicity in cutting checks. Many financial programs come with check cutting tools that enable companies to run their payroll, pay bills and so on with ease while the program constantly updates the bottom line.
Making it quick and easy for individuals and businesses to track their bottom lines, computerized bookkeeping programs are becoming hard to replace. By offering ease of use and a lot of options, these programs can help virtually anyone institute a solid accounting system.
More Resources
Online bookkeeping is fast and simple with the right software.
http://www.accountingsoftware1.com
Get help or prepare your taxes online.
http://www.taxhelp-onlinenow.com
7 Easy Ways to Save Money
Most people would love to get a raise; but did you know that by lowering your bills, you’re giving yourself a raise? For every $100.00 a month that you can lower your bills, you’re getting a raise of about 60 cents an hour based on $1200.00 a year divided by 52 weeks and 40 hours a week. It doesn’t sound like much until you figure that most companies are giving 3% annual raises and you would have to make $20.00 per hour to get a 60 cent raise. Not only that, but $1200 would pay for a decent big screen T.V.
In this article, I plan on showing you a few easy ways to save money and with any luck, at least one that you didn’t think of.
The first thing you should do after reading this article is grab a notebook, PDA or some other way to keep track and start recording your spending. Write down every purchase you make, even a soda or snack from a vending machine. Keep it up for at least a month and then look at where your money goes. You may start to see a trend that you want to stop before the month is over and by all means, change it. You may also want to do this more than once. It’s a great way to keep from falling back into or developing new bad spending habits.
Improve your credit card balances and rates. This is a given and dozens of books and articles have been written so I won’t waste too much of your time repeating the same old information. Just know that the lower your rate and the faster you pay it off, the more money you save. Start with your highest rate card and pay as much extra as you can until it’s paid off, and then go to the next and include what you were paying on the first card. You could easily drop $100 per month just from this.
Take your lunch and snacks to work. If you spend $5.00 a day on fast food lunch and drink 3 sodas a day, you can easily save about $15.00 – $20.00 a week and that would be about $60.00 to $80.00 a month just by packing a lunch, not including gas and wear and tear on your car. Not to mention how much healthier it would be. You may only want to cut back on the lunches but it would still be a savings. Just a thought, you could use the extra time to read a book or just relax.
Buy Regular Unleaded gas unless your car requires higher octane gas. Check your owner’s manual to be sure. Most places charge 20 cents a gallon extra for Supreme over Regular Unleaded and unless you’re driving a sports car you won’t be able to tell the difference. Depending on your gas mileage this could add up quickly.
Use a shopping list and stick to it. Avoid impulse buys unless they’re something you’d normally use and on sale. Clip coupons. If you think it isn’t worth it, try it for a month and keep track of your savings. If it’s more hassle than it’s worth you can stop. But I’m betting you’ll be surprised at how fast it adds up. Pay attention to prices at different stores. Most stores offer some products under wholesale just to bring you in because they know most people will buy other things and they’ll make money on the higher priced items.
Do you still smoke? I bet you’re expecting me to say quit. Well, that would save you money but I’m not going to. If you want to quit then I wish you luck because I know it’s hard.
Try out the cheaper cigarette brands. Buy a single pack and see how they taste. If you find a brand you like and it’s a $1.00 a pack cheaper then look at how much you’ll save. If you smoke a pack a day then you’ll save about $30.00 a month, $365.00 a year. If you’re scared of what people will think, buy a nice case. They’ll never know you’re smoking cheap cigarettes.
Take a look at your cable/satellite package. Look at what stations you watch and which package they’re included in. If you don’t watch anything in the higher end packages, drop the extra or find out if you can get just the channels you watch. If you have cable, take a look at satellite providers such as Dish Network and see if you can save money if that’s an option where you live. Some apartments don’t have access to the correct direction to use satellite but if you do, then it could be a better deal and you may receive a channel you’ve always wanted.
Check your phone bill. This is one of the easiest bills to be over charged for and one of the easiest to change. Most people think they don’t spend enough to bother with it, but many companies hide fees or make up their own. Some will even tell you a fee is mandatory when it’s really just an administrative fee.
What you may not realize is that depending on your calling habits or the area you live in you may want a different long distance company or you may want to go with VOIP (Voice Over Internet Protocol) if you have a broadband internet connection. We offer a calculator that compares 11 companies and shows the rates for your area. There’s even the advanced calculator that takes your calling habits and finds the best rate for you based on if you call more instate or out of state.
The point of these tips isn’t to make you a cheapskate, but to allow you to choose where your money goes. You can save the extra money, go out to a nice restaurant each month or spend it in any way you want, even to buy a new T.V. And wouldn’t it be much nicer to choose where you spend your money instead of wondering where it went?
Brian Baldwin is an entrepreneur who enjoys saving people money by offering some of the best products and services available today. Brian invites you to visit http://www.southerntechservices.com to compare our rates with the rates you’re paying and find out for yourself how much money you can save.
Another 7 Easy Ways To Save Money
In our last article we focused on a few ways to save money. This time, you’ll find a few more ways to save money and maybe a couple that you didn’t think of. As always, it’s not my intention to make you a cheapskate, but rather to give you the choice of where to spend your money instead of wondering where it went.
I mentioned this in the previous article but it’s so important that I have to repeat this again.
The first thing you should do after reading this article is grab a notebook, PDA or some other way to keep track and start recording your spending. Write down every purchase you make, even a soda or snack from a vending machine. Keep it up for at least a month and then look at where your money goes. You may start to see a trend that you want to stop before the month is over and by all means, change it. You may also want to do this more than once. It’s a great way to keep from falling back into or developing new bad spending habits.
Here’s a pet peeve of mine, ATM fees. Not only do you pay 1-3 bucks for the ATM you’re using but another 1-3 bucks to your bank. If you stop at the wrong ATM for $20 for dinner then you may be paying $26. Take a look at your bank statement and see how much you could’ve saved by planning over the last month. Personally, I saved almost $100 when I stopped using other ATMs.
Bank fees Depending on your bank, you may have free checking or pay a fee each month. If you’re paying a fee, then you really should think about how much it is and if it’s worth changing banks. You should pick a bank that has a lot of ATMs that are convenient to you and free checking. If you pick the correct bank, you can easily cut down the number of ATM fees that you incur simply by having your bank’s ATMs on the way to your destination.
Gas prices Use a search site like Gasbuddy.com Prices can vary by as much as 25 cents a gallon in the same city. It’s not worth your time to drive across town for a penny a gallon but if you can detour a few blocks for 10 cents a gallon then it’s worth it.
Prescription drugs According to a recent study, the prices can vary widely between pharmacies so unless you have drug coverage from your insurance, you should call around to different stores and check. You can also use a mail order pharmacy but be careful on those.
Pay down your mortgage Unless you have a loan that doesn’t allow this, you can over pay each month and that money goes directly to principle. Depending on your loan and the amount you over pay, you may save thousands over the life of the loan. Incidentally, some auto loans also allow this.
Pay your bills on time. A little known bit of fine print in many credit contracts allow unrelated companies to increase your rate just because you were late on a different account. Not only that but some companies will raise your rate to 29-31% interest if you’re 1 day late.
Free cycle is a group of people that choose to give away items instead of throwing them away. Not only does it save the receiver money but it keeps it out of the landfill. Do a search for your area and see if there’s a group in place.
Brian Baldwin is an entrepreneur who enjoys saving people money by offering some of the best products and services available today. Brian invites you to visit http://www.southerntechservices.com to compare our rates.
If you’d like to read the previous article, please visit stservices.powerfulintentions.com/library