How to Create a Profitable Budget and Pricing Strategy for Your Small Business

As a creative entrepreneur, you know that balancing revenue goals and budgets is critical to running a successful business—but the process can feel overwhelming. During a recent webinar, Annie Hillman, Founder & Virtual CFO of 1428 Financial, shared practical strategies for creating budgets and revenue goals that set the stage for profitability. Here’s a recap of the session, along with actionable tips to help you take control of your finances.

1. Why budgeting is essential for creative entrepreneurs

A well-structured budget isn’t just about tracking numbers—it’s about enabling growth and reducing financial uncertainty. Annie addressed a common mindset block: many entrepreneurs view budgeting as restrictive. But in reality, “A good budget empowers you to make better decisions,” she explained. “It’s about saying yes to the right opportunities and no to the wrong ones without guilt.”

For creative businesses, budgeting is particularly important due to fluctuating income, seasonal revenue trends, and the need to reinvest in tools, marketing, and education. Without a clear plan, these variables can lead to unnecessary stress and missed opportunities.

2. How to create a budget for your small business

Annie broke down the process into three key components:

• Sales goals: Start with your end goal in mind. Determine how much you need to pay yourself based on your personal budget and work backward to calculate your revenue targets.
• Expenses: Categorize your costs into:
  - Fixed expenses: Monthly costs that don’t change, such as software subscriptions, rent, or insurance.
  - Variable expenses: Costs that fluctuate based on activity, such as contractor fees, marketing spend, or materials.‍
• Profit/owner’s pay: Your business exists to serve your needs as well, so prioritize allocating funds for your personal income and reinvestment.

Pro Tip: Annie shared a free sales goal and offer mix calculator that helps you identify exactly how much revenue you need each month to meet your goals. It even breaks down how many clients or projects are required, based on your pricing structure.

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3. Aligning revenue goals with your budget

The key to creating an effective budget is aligning it with your revenue goals. To do this, Annie recommended focusing on the following:

• Understand your capacity: Track how much time you spend on tasks or projects. Tools like Dubsado’s Time Tracker or Toggl can provide valuable insights into how many clients or projects you can realistically handle in a month.
• Set realistic revenue targets: Use historical data, such as last year’s profit and loss statement, to set achievable sales goals. Don’t forget to factor in seasonality and fluctuations in demand.
• Price strategically: If your desired revenue feels out of reach based on your workload, it might be time to reevaluate your pricing. This is where understanding your costs per project and profitability metrics becomes critical.

4. Staying flexible: the mindset shift

Annie emphasized the importance of flexibility in budgeting: “Your budget isn’t set in stone—it’s a living document that should evolve with your business.” Here are her tips for staying adaptable:

• Plan for seasonality: Identify your busy and slow seasons, and adjust your expense planning accordingly. For example, you might allocate more marketing spend during slower periods to drum up business.
• Review monthly: Treat your budget as a guide. Regularly compare your actual income and expenses against your projections and make adjustments as needed.
• Give yourself grace: Budgeting is a skill that improves over time. It’s okay to make mistakes—what matters is learning from them and staying consistent.

5. Practical tools to simplify operations and budgeting

Annie recommended using tools and software to streamline your budgeting process:

• Dubsado: Manage contracts, invoices, documents, scheduling, and client communication in one system. By automating your admin processes, you can focus more on hitting your financial goals.
• Xero or QuickBooks: You can use Dubsado’s native Chart of Accounts bookkeeping feature, or integrate your Dubsado account with accounting software for detailed tracking of income and expenses. Both platforms also offer budgeting features to help you plan.
• Sales goal calculator: Use Annie’s calculator to align your pricing, workload, and revenue targets.

6. Avoiding Common Profit Leaks

Annie shared valuable insights into areas where businesses often lose profitability:

• Unused subscriptions: Regularly audit your tools and software. If you’re paying for something you no longer use, cancel it.
• Untracked time: Failure to account for your time as a cost can lead to underpricing your services. Track your hours to understand the true value of your work.
• Impulse investments: Before spending on new tools, courses, or marketing strategies, ask, “Will this provide a return on investment?”

Conclusion

Aligning your sales goals and budget doesn’t have to be a daunting task. With the right mindset, tools, and strategies, you can create a financial plan that supports your creative vision while reducing stress.

As Annie reminded attendees, “When your budget aligns with your sales goals, you’re no longer guessing your way through finances. Instead, you’re leading with confidence.”

Don’t forget to download Annie’s free sales goal calculator to simplify your financial planning.

Ready to save time and money? Try Dubsado for free with up to your first 3 clients, and get 20% off your first month or year with Annie’s exclusive discount code 1428financial!

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Watch the full webinar here

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About Annie

Annie Hillman is the founder and CEO of 1428 Financial. While finishing her college degree, she took a temporary accounting job and instantly fell in love with accounting. She worked her way up to staff accountant and stayed there until starting her business in 2020. Now, she spends her days helping business owners treat numbers like a tool, not a threat so they can run empowered, profitable businesses with calm confidence. She helps business owners embrace numbers, increase profits, and stress way less with monthly money management. Besides crunching your numbers, she loves fitness, baking bread, and hanging with her fam.

Stay connected with Annie:
https://1428financial.com/

https://www.instagram.com/1428financial/

https://www.youtube.com/@1428Financial

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