When you’re an entrepreneur managing your cash flow is one of the biggest challenges that you face. Having a budget in place can help you meet this challenge, though. If you’ve left a job to run your business you will likely be faced with sporadic income which can make personal budgeting a challenge as well. We’ve put together these tips for small business owners in Arizona as a way to create a budget that helps you grow your business, pay your bills and 
still pay yourself.
- Cash flow projections: Be realistic with these as your sales may not live up to your projections. The dreams you have for your business income might be vastly different from reality. You’re better off underestimating your monthly income than overestimating it. If you bring in more money than you projected, set it aside in the event a slow month hits.
- Project your expenses: There will be fixed expenses that your business will have to meet. These include taxes, rent, wages, utilities, Internet and phone bills. There could also be legal expenses you will incur as a start up, such as registering your business name, purchasing business cards and advertising. Even if your business can be operated from the comfort of your own home, there will still be expenses you need to prepare for.
- Plan for discretionary items: Your discretionary expenses could range from purchasing office supplies to plants and decorations for your office. Think about whether you’ll offer free amenities to your employees or walk-in customers. Put a marketing plan in place and make certain you target your marketing dollars. Will you need to hire a marketing firm to help you spread the word about your business? If so, why not consider having them focus on low-cost, no cost marketing through social media sites and blogging to let potential customers know what you have to offer.
- Save profits for a rainy day: If you have a good month and bring in more than you projected, put the money away in a business savings account.
- Pay down your debt: Debt costs your business more in interest repayments than it’s worth to carry it. Work debt repayment into your monthly budget and try to pay it down as quickly as possible.
- Join a trade organization: There are myriad items that business owners can buy on trade (aka barter). If you need to rent office space, you can find it through trade. Looking for an accountant or a marketing professional? Again, Tradesource has members that offer those services. Looking for a night out on the town after a long week at work or trying to find a way to offer employee bonuses? You can offer them restaurant scrip or use it yourself to enjoy a night out on the town. Using trade dollars for items that you would typically have paid cash for frees your cash up to pay for other items. Being a member of a trade group also gives you access to a network of business owners with whom to interact.
Make certain you have a written budget in place to track income and expenses. You’ll know your business is a success when your business profits and personal income are constantly in growth mode.