Activity 23: The "B" Word
It's time to make a budget folks! This will save you many headaches in the future -- trust me! Think of it as giving yourself permission to spend money without guilt. By planning ahead and saving for expenses, it doesn't feel like such a blow to write those checks that care for your business.
Leslie gave you a nice budgeting sheet for personal finances. You can use that one and incorporate business expenses or do one separately for your business.
Begin with a goal -- How much do you intend to gross in your first year of practice?
Then, how much are you going to spend on the following in the first year of your business based on that reasonable income goal?
•Self-employment taxes (15% of gross income)
•Office rental and furnishings (10% is recommended)
•Advertising and Marketing (5% is recommended)
•Investments in Improvements -- CEs, certifications, conferences, etc. (5% is recommended)
•Maintenance of operations -- supplies, systems and facility (5% is recommended)
•Business reserve -- cash reserve for emergencies (5-10% is recommended)
•Retirement Plan or investments (5-20% is recommended)
- Finally, based on this, what is left over for your take-home pay?
Use the comments to write about the process or your questions/concerns -- you don't need to tell us your budget.