If you want a profitable business, you need to do some financial planning — something Danielle admits she initially neglected. “When I started my business, I never came up with an actual number in my head, and I never wrote one down. That was a mistake.”
She advises: “Write down your number. It might not be the right number, but you have to start somewhere.”
Aliza had a number, but she wasn’t thinking big enough, she says. Her business partner helped set her on the right track. “In the first quarter after she joined me, she tripled the company’s revenues,” Aliza says.
The following worksheet can help you figure out roughly how much it costs to run your household, how much your spouse or partner can contribute, and a general estimate of the amount of income your new business would need to generate for you to make a minimum contribution. Later, you’ll want to add business expenses to the picture to understand how much more you’ll have to make to cover those, as well.
Download: Budget worksheet (right click on PC or CTRL click on Mac to save to your computer).
Download: Budget worksheet