Ever wonder how the successful bosses you look up to actually handle their money? I sure have and so has my friend Reina. We had questions, but we felt weird asking each other or other boss friends about it. Well we’ve recently decided enough is enough. It’s time to make it normal to talk about money with each other! Introducing the “PAY YO’ SELF SERIES”. One month, 8 successful bosses sharing their money secrets, + one webinar to share what Reina + I learned and answer your money questions!
For week #2 on my blog we have Kat Schmoyer of Dear Sweetheart Events + the Founder of The Creative At Heart Conference. I met Kat one year ago at the Creative at Heart Conference, the conference was one of the best weekends of my life! I was in awe of the experience and community she had created and knew she would be perfect to talk to for this series. I can’t wait for you to learn all about how she manages money in her business!1. Can you tell us about the various income streams that make up your business revenue?
I have several revenue streams for DSE (Dear Sweetheart Events) and for C@H (Creative At Heart)! For DSE, I am a wedding planner and floral designer; I also have an online shop, offer one-on-one sessions for creative boss ladies & host an e-course! For C@H, we host a conference and we have an online shop!
2. Do you plan your revenue goals for the year at the beginning of the year? If so how do you come up with that #?
I do not plan them separately. I currently have a large number that I know I need to meet each year & figure out my revenue streams from that!
3. With an idea of what you will make in the next year, is your next step to budget? What does your budget usually include/look like?
To be honest, it is much easier for me to budget for C@H than it is for DSE; I am still working to balance my budget better for DSE! For C@H, I have specific expenses for each conference (venue, food, speakers, swag, decor, etc.). I have a spreadsheet with my budget per conference and organize the information that way!
4. Do you pay yourself? If so how did you decide how much to pay yourself? If not how does that part of your business work?
I don’t! I KNOW! It’s TERRIBLE!! This is something I am really focusing on in 2016! I currently have a set amount that I transfer over every month to our personal account for our family expenses, but I am working with my accountant to organize my bookkeeping and add payroll to my business in 2016!
5. Do you invest back into your business (education/equipment etc.)? If so how much money do you put aside for that and what do you invest in?
I invest through education! I am thankful that I did not have to invest in a lot of equipment when I launched my business, therefore my goal is to invest in education. My goal is to invest in 2 educational opportunities each year: 1 mentor/one-on-one session so that I receive personal, intimate conversation and 1 conference/workshop/retreat so that I am able to meet new friends, grow from those around me & form lasting relationships.
6. Do you or have you started to work with a book keeper or an accountant? If yes, when did you take that leap?
I worked with an accountant for my taxes last year but nothing more. This year, I have hired an accountant who will not only work with me on my taxes, but also manage my payroll and bookkeeping!
7. With more than one business to manage how does that affect the way you manage your finances for each?
I manage everything separately. The expenses for each are so different! It’s actually EASIER to keep the two separate so that I am able to organize the information best!
8. What fears did you have around making or spending money in the beginning of your business? Do you have different fears or obstacles now, if yes can you explain?
Oh, I STILL have fears stemmed around finances. In fact, the last 2 weeks I have been incredibly stressed with finances & the pressure of keeping up with them. It really pushed me to evaluate and realize that I need to outsource. I think it’s completely NATURAL for small biz owners to stress about finances, which is why it’s so helpful to go into it with a plan. Create a budget, stick to it & know your limits!
9. How do you and your business account for the variable income nature that an entrepreneur’s business revenue can be?
This is such a scary part of being a small business owner!! Matt and I are blessed that he has a steady full-time job and therefore we can rely on his income in our monthly budget. When I was working full-time and growing my business, we set up a financial plan where my business income would be saved and we would live solely off of his income. It allowed us to build my business account & our savings account. Now that I am working my businesses full-time and do not have “steady” income, our goal is to have 6 months of livable income in our savings account. This is our emergency fund for when funds are lower in my business account. I am also very careful about my spending during the rest of year, especially “busy” season. See, it may seem like money is just rolling in during busy seasons, but we have to be strategic with that income since it will need to last 12 months. I have a monthly budget for business expenses, and a monthly budget that my family needs. I make sure that I have that accounted for in my bookings so that even if I make triple that amount in a given month, it will be used for months where business is slower and the income is not coming in.
10. Is there anything else you would like to share with new entrepreneurs who are nervous when it comes to making/handling the money in their business?
I would suggest setting up a system NOW! I made the mistake of NOT doing that and it was terrible!! So don’t wait!!! It doesn’t matter if your net is 5K or 50K. Having a system in place will allow you to be able to better organize the backend of your business & tackle the finances as they grow.