How to Create a Budget for Your Small Business

No finance degree required. No boring spreadsheets allowed.

Let’s be real, budgeting sounds about as fun as filing taxes or cleaning out the office fridge.

But here’s the truth: if you don’t know where your money’s going, your business isn’t growing. And yes, learning how to create a budget is the difference between staying stuck and scaling smart.

This guide breaks it down into simple, doable steps—so you can stop guessing and start leading your business with clarity.

Why Your Small Business Needs a Budget

A budget isn’t just numbers, it’s a plan. It tells your money where to go instead of wondering where it went. It’s how you make confident decisions, prepare for growth, and pay yourself on purpose.

If your financial plan is “check the bank account and hope,” you’re running blind. This blog will show you how to create a small business budget that works.

step #1 - Know What’s Coming In

Start with your monthly revenue. Look at the last 3–6 months and find your average. This gives you a solid income baseline to work with.

Don’t just use your best month (nice try). Use a realistic average so your budget isn’t based on wishful thinking.

sTep #2 - Know What’s Going Out

Track your monthly expenses...and be honest.

Group them into categories:

• Operating (rent, subscriptions, software)

• Labor (wages, contractors, payroll taxes)

• Marketing (ads, branding, lead generation)

• Owner pay

• Savings / Profit

• Debt repayments

• Taxes

  
  

Use this info to see where your money really goes, and where it might be leaking.

“A clear, intentional budget is one of the most powerful tools a small business can use, not just for financial health, but for growth and strategic decision-making.” – Jordan Lee, SEO Specialist & Small Business Marketing Strategist

sTep #3 - Create a Simple Budget Plan

Now that you know your income and expenses, it’s time to give every dollar a job.

A basic small business budget example might look like this:

• 30% Operating

• 25% Payroll

• 10% Marketing

• 10% Owner Pay

• 10% Profit

• 10% Taxes

• 5% Contingency/Emergency

  
  

Don’t stress about perfection—start with a rough plan and adjust as you go.

sTep #4 - Track It Monthly (Not Just Annually)

Your budget is a living document.

Check in monthly to:

• Compare actual vs. planned spending

• Adjust based on changes (seasonal shifts, new hires, etc.)

• Make smart decisions with real data, not feelings

  
  

Set a recurring 30-minute “money meeting” with yourself or your bookkeeper. This is where business clarity begins.

sTep #5 - Use Tools to Keep It Simple

You don’t need fancy software (unless you want it).

Start with:

• Our free Business Budget Blueprint Template

• A basic accounting tool (QuickBooks, Xero, Wave, etc)

• Profit First method if you like the envelope-style budgeting

• Your brain + a calculator if you’re old school and brave

Why Budgeting Matters

Learning how to create a budget for your small business isn’t just about cutting costs. It’s about being the kind of leader who runs their business on purpose, not in panic mode.

You’ll finally know:

• What you can afford

• When to hire

• How to grow

• When to say no

• And how to actually pay yourself

Ready to Create Your Budget?

Grab our free Business Budget Blueprint or book a clarity call at MindsetShift.net.

Because winging it isn’t a business plan. But a simple budget? That’s your launchpad.