Navigating the holiday season as a small
business owner can be tricky, but it doesn't have to be that way.
Here are 10 steps
that will help you in this year's holiday season, and in years to come.
1.
Keep your business and personal money separate.
Now is more important than ever to separate your business and
personalfinances. For more information about this you may refer to
my earlier article, " Living and working from one account: How it could
damage more than your bottom line".
2.
Pay yourself first. Set aside the money you know you will need
for your necessary household and living expenses.
3.
Set a limit. Once you've decided how much money you need for
your expenses, set a total budget amount for this year's holiday
spending. You might want to "trade off" by opting out of some of
your "luxury" expenses like fancy coffee or trips to the spa to
contribute to this pot of money.
4.
Don't get caught. Plan for ALL of your holiday spending. Don't
forget about other holiday expenses besides gifts - such as travel
expenses, extra childcare so you can attend parties, hostess gifts
or the cost of doing your own entertaining.
5.
Track your holiday spending carefully. If you don't get a
receipt, keep a notepad or sheet of paper handy - right near your
wallet - to jot down the amount and details of the purchase. You'd
be surprised how even those small cash expenses add up while you're asking, "where did that cash go?"
6.
Write-off what you can. With your spending records in hand,
determine which expenses were business-related - did you buy gifts
for clients, or attend holiday events?
7.
Project next year's budget. Now that you have a total of what
you spent in the holiday season, use it to project a budget for the
coming year.
8.
Divide and conquer. Divide the total amount into 12 to get a
monthly savings target. This will usually be between 1-5% of your
total income.
9.
Start a piggy bank. Open up a dedicated savings account for your holiday spending and deposit your monthly savings there.
10.
Move on. Now that you know your holiday spending and budget are taken care of, move on to concentrate on what's really important during the holiday season - spending time appreciating your loved
ones.
A true holiday budget doesn't start in November. By applying some
savvy techniques this year to keep you from overspending or getting caught unaware, you'll also be collecting valuable information that
will keep your holidays happy and prosperous for years to come.
