As you read previously, I’ve been working on my 2009 income and spending plan for the Women’s Earning Institute. I planned out all my income streams for 2009. It was quite lovely. Then I had to plan out what it would cost me…. The process below is what I would recommend you do for yourself—it is how to think about your own business money plan for the year.
There is a lot of fear in the air. Taking the time to actively plan before the year starts off helps us feel like we are in control. Don’t get caught in being reactive. Take the time to plan!
Periodic Expenses
Before I got too far, I made a list of my business “periodic expenses”. This is something I have my clients do. I have some business expenses that don’t pop up every single month, so if I don’t list them out, they can feel very “unexpected” when they do come up. For me, this is things like travel expenses, annual membership expenses and computer upgrades. Take the time to think about your irregular periodic expenses. (Periodic expenses are one reason why business owners underestimate the cost of business—they don’t come every month.)
Needs and Wants
Next, I spent time thinking about what my business needed and wanted this year. For example, I WANT to go to a couple of expensive trainings. And I want to renew an expensive membership I have, though I could let it go. I need to upgrade my computer. I need a new office chair. I want to hire a particular marketing consultant. I simply listed out my business “needs” and “wants”. Some of these things were on my periodic expenses list. Some came up for me as I simply thought about what I really wanted and needed in my business. What do you need and want for your business this year?
Expenses
Then I started working on my expenses for 2009. (I use a special planning tool that is a program that runs in Excel. I use it with many of my clients—be it personal or business finances we are looking at.) I simply went through my spending plan and put down what each category would cost me—rent times 12 months. Phone times 12 months etc. I put in all my “periodic expenses” like travel and computer upgrades. I put in a lot of my needs and wants. Most important—I put in my salary! Wouldn’t it be great if I could increase it this year? This process will help me figure that out.
Big Picture
In the end, I sat back and looked at what my 2009 income plan was for my business and what my 2009 expense plan was for my business. Guess what—it didn’t work. Sigh. But that’s okay. The first time through feels a little bit like a skeleton plan. It gives me something to work on and think about. There are some decisions I need to make and seeing this laid out before me really has me thinking hard….
Tomorrow I’m taking my entire plan to a coffee shop to keep thinking. I’ve got to get this plan into balance! It makes no sense to start off the year with a plan that is out of balance. Having a plan helps banish free floating anxiety! (Call me if you need help creating your own income and spending plan. 206-634-0861. Or see link to my private work.) I wish you abundance as you plan your next year. Remember, you can be in control of your life and business.
