Guerilla Budgeting

budget
noun:
1 your budget for the week: financial plan, forecast; accounts, statement.
2 a cut in the defense budget: allowance, allocation, quota; grant, award, funds, resources, capital.

The act of budgeting is customary to any new practice. At least I think it should be, because it is probably pretty important. Scribbling things on the backs of receipts or envelopes shouldn’t really be a businessy thing, but when you’re me it tends to be.

I knew what funds I had for start-up purposes, they would cover my initial expenses as I did some primary-school sums on the back of one of my mum’s letters. I came in on budget, more by miracle or divine intervention than wisdom. I inadvertently ‘invented’ this thing I now call guerilla budgeting, and as I discovered last night (on a toy packaging carton), it’s pretty rubbish.

I forecast that I needed £n to break even after all my expenses/overheads (which have all been listed on scraps of paper that were previously chewed by the printer). Then I worked out, at around 3am, that If I let the studio out for a hours a week, I would need to charge £x to make n. Got that? No, apparently neither did I because for the best part I severely undercut myself!

Last night I finally went back to my prodigious equation, I found that in fact x needed to be some 25% more, and that, without a significant number of weekly bookings at £x, I wouldn’t ever see a profit.

Fear not Fairybossmother fans, the figures have been adjusted, on my desk notepad which neatly sits under my keyboard. We have learned that while I may be in need of a good, but affordable accountant (as I have now spent my entire start-up budget), I am in fact really good at recycling.

M

Advertisements
Guerilla Budgeting

Network Marketing – gauging your expectations

You’ve been enticed by a sexy pie chart or picture of smiling people with inhumanely white teeth. Your friend (family member, or salesperson) is obviously very enthusiastic. You like the idea of ‘working from home’ and before you know it you’re keen to sign up to something you probably know very little about.

I deduced from my own NM journey, that the key to any degree of success is gauging your expectations from the moment you sign up…

On the whole, Multi-level or Network Marketing companies can provide you with a tidy residual income (for as long as you remain involved). They sometimes look really bad. Some deserve bad press by virtue of encouraging members to be pushy, over-inflatine the truth, and make glossy promises to the uninformed public. Some don’t deserve bad press at all, but still have abhorrent humans tarnishing the brand’s reputation with their personal class of ridiculousness.

The best, and only advice to sort the shiny from the shit is, ‘if it sounds too good to be true, it probably is’.

My key advice would be to ask yourself the following questions:

  • Does this company have an ethos or code of conduct I agree with?
  • Do I believe in or use their product or service?
  • Am I being asked to pay for joining, and does this joining fee seem justifiable?
  • Is the discount you receive worth the joining fee?
  • Can I make a profit?
  • Am I expected to pay a monthly fee or buy a ‘minimum amount’ (regardless of wether I am selling it or not), in order to stay a member or retain any people I’ve signed up?
  • Could this leave me vulnerable in times when I don’t have much trade?
  • What do I hope to earn from this?
  • Will I exhaust my enthusiasm with pushy sales before I see a profit, or is this a structure I can build on with my skill-set?
  • Can I learn, develop my confidence, and see personal growth in this company?
  • Will I dedicate myself to a part-time or full time business?
  • Am I unrealistic in expecting full-time money if I’m only dedicating myself to working part time?

If you can’t answer any of the above, you may want to start looking for a 9 to 5.

There are some great NMs out there, honestly – I’ve rep’d one for 2 and a half years now and I’ve had success relative to my expectations. I phrase it like that, because I’m not an expert or a millionaire, but I’ve been known to pay the bills! The rewards are completely reflective of the efforts. That is important to me when we’re in an environment where we don’t always earn what we’re worth. Also, I get to work in my pyjamas and on a monday morning that is reward enough.

M

Network Marketing – gauging your expectations

The Accidental Blog

I found myself parenting two kids, quite by accident. No, seriously, if you’d asked me 5 years ago if I’d have children before I was 30 I’d have snorted my vodka.

Now I’m 27 and have two small humans I’m wholly accountable for, and besides being terrified of getting it wrong I’m now learning ‘life skills’ from people I’ve never met in my life, through a website I’m addicted to.

I speak of course about Pinterest. And since it’s been among other things a procrastination tool (who doesn’t want to make penguin hats?), I have finally decided to put it’s concise wisdom-seeking powers to good use.

4 weeks ago I did something exhilarating and a little impulsive. No mum, I’m not pregnant again. I leased a studio. My plan was, and is to give my network marketing business a home (away from my sofa), give my husband’s martial arts classes a hub, and earn some cash from hiring it out. A totally sensible, grown-up thing to do.

You would think my A-level Business Studies would qualify me to draught a basic business plan… It doesn’t, I got a really crap grade, which I can’t disclose because my parents might be reading this. The business plan exists as a series of ramblings in my head. You would think I could at least cost my expenses. I did scrawl some numbers on the back of an envelope, which I now call guerilla budgeting. I probably wouldn’t recommend it. You’ll get to read about that a little later on.

Now I own a gym.

I’m confident it’ll work out, what could possibly go wrong? There’s decent feedback coming back about the whole venture from some smart folk I know. Most importantly my husband thinks I’m a ninja. Working out finer details like child care, book-keeping, management, expenses, housework and feeding the family can wait.

The sudden need to ‘not be broke’ has led me to explore new ways of promoting the practice, and ultimately learning new skills – like the art of blogging. Bear with me while I educate myself online. If you’re as new to this as I am, or maybe have humans and a business you’ve grown yourself, we can exchange tips.

As it stands, I am 2 boys, one gym, and one new blog up from 5 years ago, which, from where I’m standing is not bad going.

M

The Accidental Blog