Dec 1, 2020
Do you know how much it costs to run your business? Do you have a handle on your expenses? If these questions have you shaking your head or are making you a little nervous then you’ll want to press play to hear how you can take action and get a handle on your cashflow.
I’m Gabe Nelson and I’m here to help you create the freedom in your business to build the life you want. Subscribe to Solopreneur Money so that you won’t miss an episode. Each episode focuses on how you can invest in your solopreneur business and still have time to spend with your family.
Elaine is a successful consultant that works from home. She came to me to learn how to get a better understanding of her cashflow. She wanted to do what she could do to reduce her overhead and create a more secure future for herself. There is a lot you can learn from Elaine and you won’t want to miss her story. Listen in to find out how she was able to add $4800 to her 401K each year and how her story can help you.
The basis of a business budget includes wages, overhead, and profit. As solopreneurs, the wages are often yours alone, but some solopreneurs hire virtual help or have a small team. Overhead includes any business expenses. Software, phone bills, taxes, travel expenses, and coaching are all examples of overhead. Profit is simply your revenue minus wages and overhead. If you want to learn how to increase your profit you have to have a good understanding of your expenses on overhead and wages.
To understand how your revenue should be divided you can use the ⅓ rule. The ⅓ rule is an easy rule of thumb that CPA’s use. It states that you should be spending ⅓ of your revenue on wages, ⅓ on expenses, and ⅓ of the revenue should be profit.
Try it out for yourself. Run your numbers for the past 12 months and look for areas where you can save on overhead. You can use this handy worksheet to help you track your expenses. Drop me a line and let me know how much you were able to save. What did you do with the money?
My goal is to teach you how to give yourself more freedom in your business to create the life you want. When you invest in your business then you end up with more time for your family and doing the things you love. Check out my website to discover free resources you can use to help you reach your financial goals. If you would like to work with me shoot me an email so we can set up a consultation.
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