I as well as you or anyone else would like to make extra money if not part time then full time o­n-line. Here is o­ne basic concept that I recommend to every person I know that has any business.  Plan a budget for your business and adhere to it as closely as possible. I know that you will not think of every cost associated with the business at first but keep a journal. The reason I say this is because you will find out that it takes money and time to build your business. Now most people don’t have a bankroll of cash to invest in a new business venture. But that should not stop you from trying to gain financial freedom in your own business. But as I go through the process of building my own o­n-line business I find that there are several basic business concepts that need to be explored. Let me pass o­n a few things about a business budget that I feel everyone can benefit from knowing.

This may seem a little out of line for some but a budget is a tremendous tool for anyone in business. I cannot tell you how many times I have talk to a small business owner and ask questions about their budgets. The responses that I have gotten are interesting to say the least. Here are two favorites “My business isn’t big enough for that” and” Why should I do that I’m making money”. Really are you? My point being that if you don’t how much you need to run a business then how do you know at what point you are making money? Most small businesses beginners suffer from what I call The Great Cash Flow problem. You need to know daily operating expenses verses daily income, then you have to include expenses that occur o­n a regular basis. If you plan o­n starting a small business then you need to research the cost of that industry some require o­n hand inventory.

 Whether you business is o­n-line or off-line a good business owner knows what the cost of running their business should be over a period of time. I personally like to know daily, monthly and yearly expense projections to use as a guide throughout the year. Compare projected cost verses actual cost to see where your business stands at that particular moment in time. Some people call it a snapshot look at your business. This doesn’t have to be an elaborate plan but a reasonable expectation of business expenses that you will incur in the process of doing business.

Now you might say that this is not for you but someone who has a business larger than yours. Wrong!  Don’t make this mistake take time to talk to someone that is already in business about budget planning. A business budget will help anyone keep expenses and cost in line with available resources such as credit or cash. Take the time to sit down and write out all of you expenses that you incur with you business. You will start to see where you money is going along with your business spending patterns.

Analyze what goes where and see if you are getting a return o­n dollars invested where you thought you would. Some times we are surprise by the results o­nce they are put to pen and examined more closely. Understand that some cost will not have a return but others should start bring income back into your business. You may not see this at first but it should within a reasonable allotted time frame you need to determine that amount.

Here is a quick test I would like you to do add all the items that you use for your business.  You know phones, paper; ink cartages, web connection, web hosting, electricity, pens, postage, and etc. Are you starting to get the picture?  Here is o­ne of those old saying “If you Fail to Plan then you are Planning to Fail”. Take a few minutes everyday to look at where your business to see where it stands and where you want to take it. Then use your budget plan to make it easier to get there.

Hopefully this advice comes in handy in helping you grow your business.