Two things I think are really important in your business are prioritizing and also investing your money in the best way possible. For the last several months I’ve been using convertkit for my email marketing and while it was a huge step up from mailchimp I feel like the money I’m spending on email could be used elsewhere to expand my abilities.
So when you are sitting down and planning out your year and how you will invest your money it is also wise to check and see where you are currently spending your money and see if you could reallocate funds to better uses.
You also want to take in to account whether the things you are spending your money on have brought you any kind of income. For me I have been a member of Convertkit since August and I have not made a single penny from that investment. My clients are coming from my social media presence as well as referrals. I don’t think Convertkit was a bad investment by any means. My open ratio increased DRAMATICALLY when I switched from Mailchimp (an issue I’ve found out is a common problem with Mailchimp) but these items need to pay for themselves and I gave it a little over a quarter to reap some rewards and it just hasn’t happened and I’ve been wanting to expand my coding knowledge which it turns out is about the same cost per month as my Convertkit subscription. I believe I will have a much bigger return on investment if I transfer that investment which would then allow me to move back to Convertkit in the future should I desire to. This is about smart business decisions. They aren’t always easy but they are required!
Making a yearly budget and understanding how much your business will cost to run is essential.
I am putting together a quick worksheet to help you determine your expenses and giving you the option to add in your own options. I’ve made this on a google sheet and below are instructions on how to copy it and use it for yourself. I’ve also included a printable version for your planner or notebook.
A few notes for your budget. To figure out how much to write off for your utility expenses measure your office space and divide that by the total sq footage to find your percentage. If you have gone to a conference and/or other activities this is a tax write off. If you do videos or public appearances your hair, makeup, and clothing used in these activities are a tax write off. Don’t forget education, equipment (like that sweet new camera you just bought), and your website are all biz expenses.