Todays’ episode is for corporate women looking to start an online business.
I chose this topic today for those of us who have always wanted to run their own business but are still working in a corporate job. Be sure to tune in next week to the Entrepreneurial Woman Podcast when my special guests share their business success tips on the 50th Podcast Special.
Be sure to subscribe so you’re the first to hear our 50th Edition Podcast episode.
They’ve been able to demonstrate the new normal.
Starting on online business may have crossed your mind. Perhaps you’re planning to leave the corporate world to start a family. But, it can feel like such a vast unknown area when you’re just starting out.
The first baby step to starting an online business is to write down some numbers.
Numbers will give you the facts and guide to you make better decisions as a business owner.
So today we’ll chat about the numbers you’ll be collecting over the next few days to help you put together your draft budget to start your online business.
WHERE YOU GET YOUR NUMBERS
- Ask someone who has the business that you want to copy how much it cost them to set it up. Sounds too simple right? But it’s definitely the simplest way to budget your own start up costs.
- Use the profit margins and percentages collected by your countries taxation department. In Australia the Australian Taxation Office collects data from tax payers you can apply to your own budget.
- Go window shopping. This is a fun way to budget. Whether your budget is to redecorate a room in your house or for a new income stream in your online business, window shopping is incredibly important for making buying decisions.
TIPS TO CONSIDER WHEN BUDGETING
- How much start up capital do you have now to get your business going?
- How much cash do you need to keep the business running for 12 months while sales are getting momentum?
- Where are you going to get the cash to pay for starting your own online business? You might be working a job now and can dedicate 20% of your earnings to start your side hustle or you may just have a credit card. You might decide to start with a few other people and all contribute towards the start up costs or you might borrow some money from the bank or family.
- Try before you buy. If you’re window shopping online for a software solution you’ll notice many have a free trial period. Try them out for yourself. Watch the demonstration videos. Play around and see if they feel right for you. I’m relentless when it comes to finding a simpler software solutions to online business issues. The right software will make your life so much simpler, I promise you.
WHAT TO INCLUDE IN YOUR BUDGET
- Fixed costs. These are the costs you’ll need to keep your business running no matter what. eg some fixed costs for your online business may include WIFI, telephone, power, domain hosting, email hosting, subscriptions for software.
- Variable costs. These are the costs that grow with the number of sales you make. They are things like PayPal commissions, affiliate commissions, customer support calls, shipping, packaging.
- Capital expenditure. These are the big purchases you’ll make when you setup your business and every few years afterwards. Stuff like your computer, car signage, logo, website, phone, printer, microphone, lighting for videos, office furniture.
- Salaries and wages. These are the costs of your team to run your business for you. It also includes ensuring you’re being paid for your time too! You might have an admin person, a content manager, an executive assistant, a copywriter, an advertising assistant, a branding manager… it’s up to you to decide your team.
Taking your budget to the next level. Big business track their numbers against their budgets. Once your business is established and your team is growing, budgets are incredibly important for giving facts to the business owners. Budgets are an educated guess to some extent, but when they are compared to the actual results that month and compared to the actual results for that month last year and for the actual industry averages, that’s when the business owner can see from the numbers where the big issues are.
We dive deeper into Key Performance Indicators in our 8 week programme, but for today’s episode let’s get you writing down some of the numbers today. The main thing is to keep moving and continually making progress in small steps. There are no rock solid rules for your budget, it reflects the uniqueness of you and your business vision.
You decide how it will look like.
Comment below with the date you’re going to start window shopping for your business.
Cheering for all the entrepreneurial women I see out there, we’re all watching and you’re doing great. xx Kim
PS. Download your free budget template inside the Finance Squad Freebie Library