Setting a budget for your home based business.

The last thing you want when you start your business is to have expenses unaccounted for and ultimately lost.

Before you even start you need to decide what your initial investment will be. This investment should cover your first 3 months of advertising, miscellaneous business products and resources, and 3 months of salary if you plan on quitting your “day” job immediately.

Once you have an initial investment decided on you can then move forward with planning your budget specific to your project.

Resources will be dependent on what type of home based business. Some useful tools are listed as links on the sidebar of this blog. If you plan on using Google Adwords please make sure you purchase Perry Marshall’s, “Definitive Guide to Google Adwords”. It is a must have for entering into this competitive advertising arena.

Speaking of advertising, NO business will survive without advertising. This is your biggest expense especially if you want to accrue revenue quickly.
Although there are options for free advertising they are normally slow to show results, unless of course you have a warm market waiting in line to sign up.

Don’t get caught in just one form of advertising! Utilize several methods such as:

• Bought Leads
• Newspapers
• Google Adwords
• Ezines
• Business Cards
• Post Cards
• Car banners
• Radio Ad Coops

Spread your monthly advertising budget out so that each week you are focusing on a new stream of advertising.

A good rule of thumb for your advertising budget is 10% to 15% of your expected monthly gross revenue. If you did the math right you’ve correctly estimated you will have to spend approximately $1000 to $1500 a month to reap $8500 profit.

Finally, KEEP TRACK of your spending! It’s easy enough to just start using Paypal or handing over a credit card. But BEWARE! These costs add up quick and if you are on a limited budget you want to make sure you pace yourself for the long-term. I use Excel Spreadsheets and QuickBooks both have automated features, tracking capabilities, and are user friendly.

Yes, the saying is true that you've got to spend money to make money. But it is not true that the more you spend the more you will make. Be SMART about your budget!

CLICK HERE for information on an inexpensive program that shows you step by step how to leverage your business and get the most out of your advertising.