Start planning 2022 for your business!
In this blogpost I am giving some tips and guidance for creatives, makers and solo entrepreneurs in general about how to set a Yearly Budget Estimate to start planning the next year for your business in order to become more productive and efficient, so you can enter into 2022 having a clear mindset.
We still have some time ahead to finish the current year and this is now the perfect time to start defining some points for 2022.
YEARLY BUDGET ESTIMATE
Your business needs to have a yearly budget estimate. Why is this so important?
We need to have a bigger perspective about the results we are willing to obtain in our business and for this matter we have to determine a budget that should include income and expenses estimates.
For estimating the expenses, you can draw a table with the twelve months displayed in columns and in rows all the “surely” expenses that you would probably have in your business. For being more accurate, you can organize the expenses by sections such as:
Taxes, administration or legal payments.
You can write down the legal costs that your business has every month, such as expected taxes (you can estimate this figure based on your last year and increase it around 2%- 4 %)
This can include as well the fees that you pay monthly to a professional assessor for your accounting and bookkeeping or the copyright payouts for registering your designs (something highly recommendable to do maybe every two or three months).
If you have an insurance for your business, you should also list it here.
IT & Appliances expenses
Everything related to technical and physical equipments and systems go into this section.
This way we will include all the estimated expenses that you might have in the next year and the ones that might arrived related to:
Software: All your computer programs (Microsoft Office, Creative Cloud, Camtasia, etc) and all paid apps, fonts or plugins that you are already subscribed to or planning to acquire.
Hardware: All your tools and equipment needed in your business, such as your computer, tablet, laptop, printer, camera, etc.
Systems: website, host & domain, online shops; email accounts, backups etc
Office facilities & supplies, from stationery goods to new furniture investment in your studio.
Also if you are planning to do advertising campaigns, estimate the monthly budget that you can afford or limit it to the seasonal months where you would likely run adds.
If you are planning about attending trade fairs or markets within the next year, you can also list the estimated cost for them into this section.
If you are shipping products, you should also list here the estimated cost for using a courier service, packaging or shipping.
Human Resources expenses
Are you planning to be part of a membership? Are there any classes or courses that you are eager to take the next year? Here you can include the estimated cost for your education, but also we can think about including here books, exhibitions or anything else that can create motivation for ourselves and have a positive impact on our business.
Write down the different income sources for your business and estimate the monthly income for each one of them. What income do you expect to get this year from them? You can use the 2021 income as a reference and increase it accordingly to set the 2022 expected income.
Try to aim high in your figures (reasonably!), as this is an estimate but you are already setting your mindset towards a result, so we shouldn’t list low numbers here.
You might have:
Licensing & Buyouts
Microstock sites (Shutterstock, IStock, DepositPhotos, etc)
Physical & Online shops (Etsy, Shopify, WooCommerce, etc)
Markets & Trade Fairs
By listing accurately the previous sections we will be able to have a better picture about what will probably be the monthly cost and income for our business in the next year, allowing us to adjust in advance our performance if needed.
Looking for a tool where to have all the relevant data in one place?
In my 2022 Journals inside the Finance section, there are two pages especially dedicated to planning the Yearly Budget Estimate for the next year (pages 140 and 141).
I have 3 cover designs available for my 2022 journal and you can read more about them in this post.
Visit my online shop here to get all the different links to Amazon International Markets where you can get them.