How do you stick to a budget?

[Curly Bamboo]

I am 11months into my business. I am self employed. Before I started I did a forecast of expenses for professional products and other consumables needed to carry out my treatments. I admit I was not diligent enough and have not been monitoring the expenses to date. I have exceeded my budget expectation :green:

Why? well I like to use high quality products and I am always keen to try new products to compare eg: I wil buy 3 different eyelash glue to test, or 4 different types of top coats, various waxes, I am very heavy handed with facial products etc...as you know things do add up!

At some point I need to draw a line and say is there a cost benefit value to all these purchases?

How do you go about setting a realistic budget? I am still in early stages of a new business so spending where it does not generate new business is not 'smart'. Yes my treatments are excellent, current customers happy, but this does not bring in enough new customers to cover all my purchases.

I do see my purchases as a good investment but if I am not fully booked all the time, why should I be buying and trying new things?

Could someone shed some logic on this please?

 

[persianista]

Personally I cant see how you are justifying overspending. Use up what you have, and keep tight control of your costs. Products usually mean more to us prof than to our clients.
All your extra spending is coming directly out of your profit, never forget that.
My staff would have me spend massively on stock. I have to justify all expenditure before I order.

 

[beautystuff85]

You mite like trying out new products but u should really just find your favourites and stick to them. (You've gotta think business about it.) There can't be that much wrong with all the other products u've tried just try hard to stick to 1 new product evey couple of months,i always find getting your calculator out an addin every thing up will give u a good shock to make u realise how much u have over spent!! An then look at your weekly takings!- and if u wanna get some cash back on all the products u don't use sell them on e bay! Hope this helps i know its hard to curb ur spending!!
xxxxx

 

[cabinkel]

I have to confess that I too often over spend, and I am 5 years into being self employed, lol:smack:
The method that I have now is that I divide my weeks takings into 3. One 1/3 is for tax/ni another 1/3 is mine and the final 1/3 is the businesses, for stock etc. I will be honest and say that often my 1/3 is dipped into for new towels, that new polish colour that I just cant live without etc, as I just cant wait.
One thing I would not do though is get into debt with credit cards etc for business spending. That is where I draw the line:lol:

 

[Curly Bamboo]

thanks for advice.

How much would you allocate for training?