An art business budget is essential in determining break-even projections, cash flow estimates assumed earnings, and setting a goal for retained earnings. It also helps an artist focus on the essential numbers and develop a picture of what the business will look like in three, six, nine and 12 months.
At ArtSHINE, we encourage our artists and designers to focus on a 90 day plan. Here are four top tips for you.
Compile your tax returns from the previous two to three years, your balance sheets, profit and loss statements and bank statements.
Divide your expenses into two categories: fixed expenses, such as business loan payments, insurance coverage and lease payments, and variable costs, like employee wages, inventory or raw materials purchases, and utilities.
Create a spreadsheet prioritising expenses. Divide the expenses into quarters and then into months from the past two to three years along with past earnings relative to those dates.
Calculate your budget. Estimate your growth percentage and assume an increased percentage of expenses. For instance, if your business typically grows 8 percent a year, set an earnings estimate at 8 percent, with a 3 to 4 percent increase in expenses. This will yield your expected earnings and expenses.
Want to learn more?
We’re here to help you to take action just like we’ve helped thousands of other entrepreneurs, business owers and creative professionals all around the globe.
Now is the time to let your passion SHINE.
Now is the time to Make Tomorrow Today!
To your success,
Vinh Van Lam & Stuart Horrex
Your Coaches ArtSHINE industries