Courtney Randall is a dynamic business coach, seasoned sales strategist, and catalyst for growth. As CEO of OmniChrono and co‑founder of the Local Business Academy, she leverages over a decade of hands‑on experience to empower entrepreneurs and small business owners with practical systems, clarity, and accountability
How to Prepare a Business Budget That Actually Works
You are not alone. If you are like most business owners, you’ve probably asked yourself how to prepare a business budget, especially when expenses creep up, revenue feels unpredictable, and you’re unsure if your money is being used wisely. Most people make budget decisions based on gut feelings instead of facts. Preparing a business budget doesn’t have to be complicated. You just need a structure that shows exactly what’s coming in, what’s going out, and what systems or people are making your business more profitable. This guide will walk you through what to track, what to expect, and how to use your numbers to grow, not just survive.
1. Understand What the Key Numbers Actually Mean
Before we dive into the spreadsheet or categories, let’s make sure the definitions are clear.
- Revenue: Total amount of money your business brings in before expenses.
- Expenses: Costs required to run your business: tools, payroll, rent, taxes, and subscriptions.
- Net income: Profit left after all expenses are paid.
- Money in the bank: Current cash balance. Separate this from net income.
Confusing these terms leads to poor decisions. A clear budget matters.
2. Use a Simple, Repeatable Monthly Format
You don’t need an MBA. Just a consistent structure. Here’s a basic layout:
| Category | Suggested Notes or Benchmarks |
|---|---|
| Advertising and Marketing | Aim for 10 to 20 percent of total revenue |
| Payroll | Should stay under 25 percent of total revenue |
| Cost of Goods Sold (COGS) | Varies by industry: labor, materials, delivery |
| Rent or Lease | Keep under 10 percent of monthly revenue |
| Insurance | Liability, cyber, and workers’ comp |
| Tech Stack | CRM, scheduling, email tools, automation |
| Taxes and Licenses | Local, state, federal, property taxes |
| Maintenance and Utilities | Equipment, repairs, electricity, water |
| Supplies | Office, production, shipping, fulfillment |
| Phone, Internet, Security | Often overlooked, but adds up |
| Travel | Client visits, hotels, meals |
| Staff Incentives and Bonuses | Track carefully to boost performance |
| Miscellaneous | Keep it lean, not a catch-all |
| Net Income | Revenue minus total expenses |
| Money in the Bank | Real-time balance before expenses |
📥 Download the free monthly business budget spreadsheet It’s pre-formatted with formulas.
3. Review it Monthly and Adjust as You Grow
Set a recurring “money meeting” each month. Use it to:
- Review actual expenses vs. budget
- Catch unexpected increases or unused subscriptions
- Check cash in the bank
- Decide where to cut or invest
This habit can recover thousands of dollars each year.
4. Track What Is Working (and What is Wasting Your Time)
Don’t guess. Tag your lead sources. Track return on ad spend and conversions.
- Tag and track every lead
- Build custom forms and funnels
- View all your metrics in one place
- Automate follow-ups and save time
5. Know These Three Growth Metrics
1. Customer Acquisition Cost (CAC)
2. Lifetime Value (LTV)
3. Return on Ad Spend (ROAS)
If you aren’t tracking these, you’re operating blindly.
Bonus Insight: Systems Save You Money and Protect Your Time
Your time is valuable. If you’re doing $25/hour tasks but are worth $200+/hour, you’re losing money. Good systems automate tasks and let you focus on selling, leading, and building. If your budget doesn’t include software or team support, you’re risking burnout.
6. Don’t Just Budget. Forecast with Purpose.
A budget tells you where your money went. A forecast tells you where your money is going. Once you build a reliable budget that reflects your actual costs and revenue, you can start using that data to make strategic predictions about the future.
Ask yourself, if nothing changed, where would I be financially in three, six, or twelve months?
From there, build simple projections using your average monthly income and expense trends. Add in known future costs like hiring, expansion, equipment, or seasonality. Forecasting is not just about preventing emergencies. It positions you for growth. When you plan ahead, you know how aggressively you can market, when to scale, and whether a business loan is a smart move or a liability.
Many business owners wait until something breaks to fix it. Forecasting helps you stay in control and make confident decisions before pressure mounts.
7. Use Your Budget to Align and Empower Your Team
Your budget should not be a secret. When your team understands the financial goals of the business, they are more likely to act in alignment with them. Consider sharing your revenue targets, key performance indicators, and cost-saving initiatives with your staff. This builds trust and accountability.
For example, if your goal is to hit $30,000 dollars in revenue this month and you are trending at $27,000, your team should know that. When bonuses are tied to performance or profit, it creates motivation and ownership. People work differently when they understand how their effort contributes to the bigger picture.
You can also include your team in monthly or quarterly reviews to reflect on what is working and brainstorm improvements. Giving them a voice can create buy-in and often results in solutions you might not see on your own.
8. Reflect Quarterly to Drive Long-Term Growth
Monthly reviews help you stay on track, but quarterly reflection is where strategy takes shape.
Every three months, take a step back and ask:
- Are we spending in line with our priorities
- What is driving profit consistently
- What expenses are draining resources with little return
- Where can we double down to scale further
Use this time to refine your plan, reward your team, and reinvest in what is working. Eliminate waste and focus your energy where the returns are highest. Even small shifts in spending and focus can create large results over time.
9. Make Budgeting a Leadership Tool
The more clearly you see your numbers, the better you can lead. A great budget is not just a spreadsheet. It is a roadmap for smart decision-making, healthy growth, and sustainable leadership.
When you know your numbers, you can price confidently, hire strategically, and scale without fear. You are not just building a business. You are building something that can grow beyond you.
Budgeting does not limit your potential. It unlocks it.
You Also Need a Website That Works
If you’re spending money on traffic but don’t have a converting website, you’re wasting it.
- A conversion-optimized site
- SEO built in
- Ongoing support and performance tracking
- A system that supports your budget
Your Budget Should Lead You, Not Limit You
A budget helps you see clearly so you can:
- Price correctly
- Hire at the right time
- Scale with purpose
- Stop guessing
- Start leading
🎯 Need help? Get a free business audit that covers:
- Your current budget
- Lead tracking setup
- System recommendations
- CAC, LTV, and ROAS review
- A plan to reduce stress and increase clarity
Need a better website or marketing plan? Contact Dr. Brad’s team for the SEO support and structure you need. Let’s fix the gaps before they cost you another month.
