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Small Business Expense Control – Start With Yourself

Leaving the corporate workplace to live your dream as an entrepreneur requires more than a great business idea or great business skills. It requires financial discipline. Not only in how much you pay for office supplies or a good accountant, but in how you control your personal spending habits. When you were collecting your weekly paycheck from the corporate world, that daily latte at Starbuck’s may have been an expense you never noticed. But now that you’re flying solo, can you afford it?

A [tag]small business[/tag] tip provided on PR-GB.com is to begin keeping a spending diary. By keeping track of every penny you spend every day for a week, you will provide yourself with a snapshot by category of where your money is going each week. With this information, you can create a budget for yourself that you and your business can live with. Here’s how to do it:

Carry a small piece of paper in your wallet divided into columns labeled Monday, Tuesday, etc. Each and every time you make a purchase each day, record it, ensuring to do this every time so as to have a complete picture at the end of the week. At week’s end, create the following categories, and enter each purchase into the appropriate category: Food, transportation, entertainment, clothing, and miscellaneous.

Next, add up each category and ascertain what percentage of your money is being spent on each category. Does anything surprise you? Are you spending more on food than necessary? Use this tool to create a budget for yourself. Exercising discipline will help you to set and realize your business plans and goals.

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