Budget & Investments Pt. 1


However far your revenue stretches this year will be the jumping point for next year's growth.


In the early days of any business, there isn’t much talk of investment because there really isn’t much extra money to invest...or is there?

What if I told you that budgeting and investing your money is something you are already doing & will continue to do for the lifespan of your business. Every purchase you make is an investment in your business. Every dollar you spend should be a part of a big picture investment plan.

People fail to properly invest their money because they don’t realize that every dollar the have, every profit they earn and every dollar they spend is encompassed into their budget and investment system. Accounting for your money is something that will make or break the lifespan of your mission. If you aren’t saving or spending wisely, you are wasting costly resources. Think of every item you purchase as an asset and every expenditure as a necessary means of growth.

Most businesses fail to bring in the income necessary for proper investments because they didn’t first appropriately set up a budget. When you believe in something as fiercely as you do dear maker, you must choose to set your company up for growth. Salaries, rent, inventory, the cost of maintenance, supplies, taxes, advertising must all be accounted for, but also seen as an investment in your future.

Edit and Focus

This beautiful practice will make its way around time and time again. One rule of thumb I pass onto to new entrepreneurs more than any other is the 50/50 margin. Where your overhead meets your profit reveals the health of your business. Your mission cannot stand on any less than 50% profit. After you account for all costs involved in your fiscal year, how much profit are you left with? If it is less than 50%, you simply cannot sustain business as is for very long. It is time to edit your costs and refocus your budget on wiser investments.

The Seven Streams

Some of you out there might be reading this while thinking, “I don’t think my business can produce enough revenue to support me, let alone bring in 50% profit.” As an entrepreneur or sole proprietor, you are not just responsible for the growth of your company, but also sustaining your own welfare. Those first few years might result in slow profits, but in order to take your business to the next level of growth, the money must come from somewhere. An average entrepreneur will always have seven streams of revenue they can use within their giftings to broaden their income.

When dreaming up the different areas you could utilize your gifts to bring in revenue, continue to focus on your passion. This isn’t about losing momentum in the mission of your dream, but rather broadening the horizon of all it’s potential. For instance, your brick and mortar shop can be rented out for private events or house private classes that teach your clients a few tricks of the trade they too can learn. Once your mind starts dreaming of all the potential income your gifts and assets stand to be used for, your revenue will have quadrupled in an instant.  This practice equates to quicker financial freedom than you could  have ever expected. If your sales are slow one month, you always have an alternative avenue of income to pull from.

Profits aren’t free money

Every dollar in sales can build up and lead you to your dream life, but those first profits aren’t free-flowing cash dear maker. Reinvesting your money should always be at the top of your list. Take the money you make this year and invest it into your growth for next year. Your dream costs money, but so does living. A healthy net worth is the result of finding a balance between cost and revenue or better said, investment and growth.

It is natural to have apprehension about taking investment leaps. I have experienced this myself. In A Maker’s Guide I tell the story of our first brick and mortar purchase. Boy, was that ever a leap of faith! But looking back now I realized that as scary as that just felt, the opportunities that investment opened up for us changed everything. Without the disciple to budget our cost to revenue percentage we would have never been able to make our first large scale growth. Without that first large-scale growth, we would have never been able to make another, then another and so on. These foundational years are everything dear maker. Don’t fear them, but rather live them out with wisdom and excellence.

Until next time,



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