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  • Luanne Cameron

Your business budget, it's important!


I hate working with numbers, but it's a necessary evil. I work hard to be in tune with bills and upcoming expenses. It is part of the reason I do my own bookkeeping input. I still meet with an accountant, but I like entering my own expenses because it keeps me up to date with what's going on with my business, where I might be spending too much, etc.


Structure & Discipline are at the core of financial sucess (see page 48 of The 110 Philosophy for more on that).


Just like a recipe, you need to have key ingredients

  • Monthly statements - look them over and reconcile when they come in, don't procrastinate

  • Key business indicator report - how much is coming in and going out

  • Develop structure (like the 50/30/20 rule) to know ahead of time where your shortfalls may be

  • Once a month sit down and really look at your numbers. You can't make good business decisions when you don't know what's going on

Something that helps is to have an accountability partner, with a process in place to make sure that person holds you accountable. Someone who you have to answer to. My accountant is also my business coach and isn't shy to ask what the status of my reports is.


Financial mental health is important, especially in light of what's going on in the world right now. You carry this over into how you are managing your own finances. If you are slacking in one area, there is a good chance you could become complacent in the other. If you are stressed about your business budget, your home life will most likely be affected too.


Know where you're going, make sure you are managing your debt, and only taking on what you can handle: credit cards, mortgage, car payment, loans... every household has a comfort zone, you need to be in tune with what works for you. We as a household do better with a small amount of credit card debt vs a lot. It is better for our household. There was a time with kids in college, recession, etc. when our debt piled up. It was a necessary evil. We needed to use it to navigate what life was throwing at us, but we were acutely aware that it was time to change the habits when then seas calmed down.


Establish obtainable goals of when the debt is paid off, and don't use lines of credit for frivolous things. Same with business. Here's an example... I have a line of credit and have had to tap into it during a health crisis, but now that my kids are out of college, the health crisis is behind me, business is stabilized, and we have an aggressive plan to reduce our debt and have been staying on track. When I needed a new desk at the office, I could have easily tapped into my business line of credit to buy myself a gorgeous executive desk. I could have told myself to splurge a little. I work hard, I deserve nice things. Go ahead, just do it! But, I know that it is more important to pay down debt than buying new office furniture. So instead, I use my son's old desk. Recycle your supplies where you can, focus on what is important. Know how much the smallest things cost. When I worked in the corporate world, I had no clue how much our company-branded pens even cost. Now, as a small business owner, I am very aware of how much that same pen costs. It may seem small, but those little details are what's making a difference in my profit and loss statements!

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