A budget is an itemized summary of expected income and expenses for a period of time. The most important word in my definition is “itemized.” A budget is not just a total.
If you’re starting or growing a direct selling company, the odds are high that your funds are limited. You can’t afford to spend your money on the wrong things, or to spend too much of it on the right things. That’s why you need a budget.
When Do You Need A Budget?
The ideal time to create a budget is before you start spending any money for your business, but ideal isn’t always reality.
You may need to start spending money before your budget has been completed. If this is the case, try to limit your pre-budget spending to no more than a specific amount, perhaps $2,500 or $5,000.
Definitely have your line-item budget prepared before you spend money on items like inventory, software, legal fees, consulting, etc.
Your budget should be part of your direct selling business plan.