AKA “Nusye’s sharing her love of spreadsheets and budgeting”
I’m quite excited to share my experience presenting at Fareham College’s Creative Expo Day: I spoke to a group of eight art college students (and three of their lecturers) about budgeting and bookkeeping for creative freelancing entrepreneurs. As a fellow creative entrepreneur, I know how overwhelming managing finances can be, and I was eager to share tips, some tools and strategies that I have found helpful in my own business. In this blog, I will discuss the key takeaways from my presentation and why budgeting and bookkeeping are essential tools for any creative entrepreneur looking to maximize profitability while minimizing expenses.
As a creative entrepreneur, it can be challenging to manage expenses and income associated with running a business. I must say, creating a budget and keeping track of expenses is crucial to ensure that all expenses are covered and smart investments are being made. Budgeting begins with tracking all income sources and expenses, including purchases and sales related to your business throughout the year.
After creating these records, reviewing them to check if they make sense for your particular business; and develop a plan for dividing up the funds available each month into different categories e.g. tools & materials (COGS cost of goods sold), rent, taxes, insurance, marketing, and more. This ensures that every expense is accounted for while still allowing some flexibility in case unexpected costs arise.
For my money, it’s also essential to set both short-term and long-term financial goals when budgeting. Knowing what you want to achieve in the next few months or over the course of a year will help guide where you should invest resources so that you can meet those goals efficiently and effectively. Also, setting goals helps keep you motivated and accountable when it comes to staying on track financially with your business.
Especially for the Arts community, understanding how grants work in relation to your business is crucial for creative entrepreneurs. Grants are an excellent way for creatives to receive funding without having to take out loans or use personal savings. Although they require extensive research and an application process, if managed correctly, they can be extremely beneficial for creative entrepreneurs looking for extra capital or resources for their businesses.
OK; all the above is true. And so budgeting and bookkeeping are essential components of running any successful business, especially in the creative space. Setting clear objectives and creating detailed budgets, funds can be appropriately set so that all necessary expenses are covered while still allowing some flexibility. Understanding how grants work can also provide additional support when needed without having to take out costly loans or dip into personal savings accounts. With proper planning and management techniques, any creative entrepreneur can make their dreams become a reality.
Your printmaking friend, wishing you happy printing and budgeting 🙂