Dolly (00:01.332)
Welcome to the Systems and Workflow Magic podcast, where I help small business owners transform from feeling scattered to becoming streamlined in their creative businesses. I’m your host, Dolly DeLong, a wife, mom, believer, family photographer in systems, workflow, and launching educator. Now, this podcast is your go-to resource for mastering the back-end puzzle pieces of running a successful business.
Whether you’re just starting out or are an intermediate business owner looking to refine and elevate your systems, workflows, and operations, you’ll find practical strategies and advanced insights here to take your business to the next level. Each episode is designed to feel like a strategic mastermind session, guiding you through smarter launch planning, more efficient systems, and greater clarity in your business operations. Together,
We’ll explore how to organize, streamline, and grow your business with intention so you can achieve sustainable success without the overwhelm. I’ll also take you behind the scenes to uncover what it’s really like to run a business as a solo entrepreneur, sharing honest insights and actionable strategies. Plus, I’ll bring on expert guests who will share their advanced tips and proven methods
to help you unlock new levels of clarity and efficiency in your business. So are you ready to simplify your backend, elevate your operations and launch with purpose and confidence? Let’s dive in and create some strategic workflow magic.
Dolly (01:45.314)
Now, before we dive into this short and sweet episode, I wanted to share a little backstory. So the system I’m talking about today stems from a tool my husband, I created for my business several years ago, 2021 to be precise. And it is a bookkeeping template. And this was designed, he designed this to help me track both.
my income and expenses because you know why? I was not paying myself. I was not paying myself as a small business owner. I was just letting life happen to my business. I was just throwing spaghetti at the wall and just guessing my way through. And it was frustrating for me. It was frustrating for him to see like his wife and just like throw spaghetti at the wall and
work long hours and have nothing to show for it. So he created this bookkeeping template for me so that I can start creating a better system for the numbers of my then photography business. And now I still operate my family photography business, but now I am a systems and workflow educator and launching educator and how I use it for both sides of my business. So I am tracking.
my overhead expenses, I’m tracking my monthly income. I know what it takes to run my business. I know what it takes to like what all my moneymakers are. And I’m not throwing spaghetti at the wall anymore. And I can use it in conjunction with my marketing systems. And so thank you, Ty. I hope this brings a smile to your face if you’re listening to this. So yes, this is a system.
that my husband created for me and this simple tool, the simple system transformed the way I run my business. And now it’s something that I sell in my shop. It’s a system that I sell in my shop and it’s one of the best selling systems. And of course you’ll find it linked in the show notes. So be sure to check it out after the episode. If you are looking for a system to simplify your financial tracking, if you need to know your overhead
Dolly (04:04.398)
costs and your income streams and want to know how to better project for the year ahead. This system was made with you in mind for the solo business owner in mind. OK, so this system that I’m talking about today, like how to better prepare for the new year. And right now we’re sitting at this is being recorded in twenty twenty four and I want to help you better prepare for twenty twenty five. So we’re going to talk about.
why forecasting expenses is so important. So I have three really quick reasons to share with you so that you can take action after this, okay? So reason number one, you need to be understanding your overhead costs. So every business, no matter its size or type, has operating expenses. So whether you’re a photographer or an online educator or a service provider,
you should know your monthly and yearly costs because it’s critical. You should know what it costs to run your business. So these could include software subscriptions, equipment rentals, studio fees, or even renewals of some sort. And sometimes they could hit at once. Like, for example, me, I do yearly subscriptions instead of monthly subscriptions. And so, hello, January is pretty steep for me.
Instead of it surprising me every year, I am prepared for that every year. So when you understand your overhead costs, you can make better decisions about pricing, budgeting, and how many clients or sales you need to stay profitable. Remember, like, you probably hear this over and over, but let me remind you, your enough number won’t look like everyone else’s. So please, for the love of God.
Please stop comparing your business to others and focus on what you need to be sustainable and to grow in your own small business. Like that might mean, like I’m just like throwing out a number here. You may only like, I say this in quotations because this is a lot of money. You may only need $2,000 a month to profit from your business. And if you are constantly listening to
Dolly (06:24.494)
online celebrity business owners who are like, need to make 10,000, 20,000, $50,000 in a month. You might be scrambling after someone else’s enough number versus if you actually slow down and you see, this is actually the goals I need to hit and that’s only in comparison to them is only $2,000, then that takes a big burden off of your chest.
The first step is to understand your overhead costs and then you can weigh it against what you want to make profitability wise. All right. So a reason number two of forecasting is important is planning for high and low months. OK, so let me explain that. So not all months are created equal. All right. There are going to be high months and low months. So let me explain this. OK, so some months might have higher expenses due to
annual renewals or unexpected costs, while other months might feel a bit lighter. So by forecasting your expenses, you can anticipate those heavy months and set aside funds in advance. So planning in advance. So let me give a very concrete example. I alluded to this earlier, but I have set out for my own photography business like
This was years ago when I established myself as a full-time photographer. decided instead of doing monthly costs, monthly subscriptions for my photography business, I just decided, I want to save 15 to 20 % off of instead of doing monthly subscriptions, I’ll do an annual subscription. And that saved me 20, like some of my programs I use saved me 20 % per year. And I like that, but.
It was a large chunk for that month. And so it just happens to come out in January of every year. And so I now know this going into January of every year, I know that I’m to owe a little bit more for my expenses. And so what I do during the months where I am making more like I’m profit profitable.
Dolly (08:41.502)
in the months of August, September, October, November, because of a lot of family sessions, I’m taking a lot of that profit and I am putting that aside in savings so that I can have a little bit more cushion money for my higher expenses months. so that way it’s not surprising me when January comes. But of course, this took time, this took…
for me to develop that system. Thus, had alluded earlier, like Ty had to literally create this bookkeeping template for me so that I could write everything out and I could see it for myself. I needed to see the data instead of depending upon my feelings and being an emotional roller coaster every year. And so it’s really eye-opening and it’s always eye-opening for me. And so it’s because I was able to
see the forecasting of my expenses. So again, here’s another example as a photographer. I know that often I like another example as a photographer, I know that I have high rental fees during the holiday season for studio sessions. OK, so by looking at my historical data, I can then predict when these costs will come up and then I can plan my income goals accordingly. So I hope like.
those examples of like when I’m normally renting out studios for many sessions and then also the example of when my subscriptions are or annual subscriptions are due. Like I am forecasting, OK, this is how much I’m going to own these months. And so I need to save up and have that cushion. And so I’m better forecasting. So I hope it’s kind of.
making a little bit more sense for you. so reason number three you should forecast for your business is it’s treating your business like a business. OK. So if you want others to take your business seriously you need to take your business seriously too. So that means knowing your numbers and running your business like a business not a side hobby. Now you don’t have to be a financial expert.
Dolly (11:01.038)
But you do need a system that keeps you organized and informed. So separating your business expenses from personal expenses is a very critical first step. So trust me, this will save you so much time and stress, especially when tax season rolls around. And again, let me stress to you, I am not a financial planner. I am not an accountant. I am not a bookkeeper. I do have a, like I am.
at the point in my business and I will recognize that this is such a blessing for me, but I am able to hire out a bookkeeper and able to hire out a CPA and they work together as a team to help me understand the systems, the money systems of my business. But before all that, I had to establish a better foundation of understanding the numbers behind my business, understanding what my expenses were.
I had to understand what different categories were of my business of where I was spending my money. I had to categorize what incomes were, what my main money makers were instead of just like, again, basing everything off of feelings and basing like going through the year on an emotional roller coaster of fear of like, I know I’m gonna make a lot of money starting in August, so I’ll just.
just panic market until then. No, like I needed to develop a sustainable financial system for myself and just look at the data. Yeah, so I am so grateful again to my husband for creating that bookkeeping template. And then that helped me create a system for myself.
And then later on, like in 2022, 2023, that’s when I was able to bring on an accountant and bring on a bookkeeper to my business to help just like create those critical systems for my business. But if you are listening in right now and you’re facing 2025 and you’re like, Dolly, I am not at the point yet in my business where I can outsource a bookkeeper and I cannot outsource a CPA yet.
Dolly (13:18.626)
then I do want to encourage you like now is the time to be real with yourself and start looking at the overhead expenses of your business and so that you can make better data decisions based off of forecasting, okay? So you know I love talking about launching. So as your launch BFF and guide, I’ve created something just for you. Introducing the Essential Launch Email Checklist.
comprehensive step-by-step guide to help you take the guesswork out of one puzzle piece of your next or your first launch. And this puzzle piece is your emails. Now, in full disclosure, this isn’t a template of emails. It’s a detailed checklist that will take your launch from scattered to, well, more streamlined as I like to say. And the best part
It’s an easy to download Google PDF guide, so it’s perfect for solo business owners like you. So if you’re ready to launch with more confidence because you know exactly what emails to create, grab the free essential launch email checklist now by clicking the link in the show notes.
So now that we’ve covered the why, let me give you a peek behind the curtain of how I personally forecast my expenses for the year. So again, I hinted at this. I use a simple spreadsheet system to track all my reoccurring expenses and my subscriptions, and I break them down month by month. So this system allows me to identify my baseline costs for the year. All right.
It also helps me calculate how much revenue I need to cover for these costs because remember, some months my overhead might be higher due to annual subscriptions coming out versus other months might feel lower. Like I’m not spending any money. And so that way I know how much revenue, like what my enough number is and what my profitability goal needs to be for every month.
Dolly (15:31.788)
And so that kind of leads to point three, like it helps me set realistic income goals for each month. So by knowing these numbers, again, I’m not panicking or scrambling to hit unrealistic income goals. Instead, I’m able to plan my marketing efforts strategically and align them with my financial needs. So hopefully you listened to last week’s repurposed episode of how Taylor Cusick Holman, the creator of Engie,
She and I sat down and we spoke about the importance of creating a system of marketing for your business. And so when you have a really good system, a financial system laid out, that goes hand in hand with your marketing. And I’ve seen it time and time again, even as a small business owner. So I don’t want you to listen in and to tune me out and to think, well, I’m not a big corporation like, I don’t know, Dolly, like Coca-Cola or…
I can’t think of any other big corporations, Coca-Cola came to mind, but they have a big life overhead and they have a huge team working for them. Yeah, they do. But you, as a solo business owner, you can also develop these systems for yourself. Will it take time? Yes, but it will be worth it to lay out these foundations. using more examples, because I love examples, okay? So let’s talk about more real life examples so you all know.
I am a small business owner and I have two very distinct businesses. I have a family photography business based in Nashville and then I also am an online business owner. I’m a systems and workflow educator. I love to talk about the power of systems, workflows, SOPs and launching for your small business. So I have very different expenses for each of these businesses. So my photography business has higher costs like
studio rentals, hair and makeup artists, equipment upgrades, and it depends on what month it is. Some months are more expensive than other months. So again, with forecasting, I’m able to know, normally, historically in September, I’m gonna be spending this much because I am renting out studios. I’m also hiring out hair and makeup artists. so again, my photography business costs more to run.
Dolly (17:58.444)
On the flip side, my education business has a lower overhead, but it still requires investments in tools like hosting platforms and marketing software and project management software to help me run my business. So I need to know what it would take to run my online business and I need to have realistic expectations for myself versus just me.
saying, okay, I’m just gonna like throw all this money around blindly and just hope for the best. Like, no, I need to have a working knowledge of what it takes to run my business. So normally at the end of every year, normally in November or December, I review my expenses from the overall previous year and map out reoccurring costs for the next year so I can plan ahead. And for…
I could also have a better plan for unexpected expenses like equipment repairs or travel. I’m trying, I always try to build in a small buffer into my budget to ensure I’m prepared. I honestly, like if you want an inside look into my head, I am trying my best to have a buffer of six months.
just in case of expenses built out, just in case I need to take a break or something happens or I need to step back. Like now I don’t want you to be like, are you taking a step back? No, I’m not. But I’m working to that goal. even my bookkeeper wants me to work towards that goal. And so because I know what my overhead expenses are to run my business on average, I am working towards that goal.
slowly chipping away at that. It’s really hard because when I have that in my savings, I’m like, I could just buy this for myself. And so it is very tempting to want to spend it. So full disclosure, I’m still chipping away at it. But one of my goals for my business is to have that six months of overhead of expenses set aside for emergency purposes. All right, so again,
Dolly (20:17.486)
Your resident systems of workflow BFF is still working towards that goal. All right. So if you’re wondering where to start, like you’re listening to this, you’re like, great, Dolly, like I’m happy for you. And you’re saying that sarcastically in your head. OK, tone it down a little. OK, so here’s where you should start. Here’s a quick action step. I would say print out your bank statements for the last 12 months.
and highlight all of your business expenses. Categorize them by type, subscriptions, equipment, contractors, and know which ones are reoccurring. And so once you have a clear picture of your expenses, you can use that data to create a monthly budget and forecast for the year, all right? You should know where your money is going. And then also, like,
You should have your business expenses separated from your personal expenses. All right, please do that. Okay, so one last thing before we wrap up. If you are just getting started with setting up a financial system for your business, I highly recommend checking out my bookkeeping template for creatives. It’s a low cost one time investment of only $50.
and you can reuse it year after year to track your expenses and income and categorize your income and know where your money is going and can forecast for the next year. So even if you’re not ready to hire out of the keeper, this tool will give you a solid foundation for managing your finances like a pro so that you’re able to hand this off to your CPA come tax season.
And if you are looking for an all-in-one organizational system for your business, don’t forget to check out my Master Business Operations Trello Board. It’s designed to help you stay clear-headed and organized no matter how hectic the year gets. And so don’t worry, I will be sure to put that in the show notes of this episode. So thank you so much for listening all the way through. I really hope that this episode gave you more.
Dolly (22:28.782)
actionable steps to create a better financial system for your business in 2025. So again, remember forecasting your expenses isn’t just about the numbers. It’s about creating more clarity and peace of mind to creating a clear path for your business because it will create a positive domino effect in how you market your business and just like how you move forward in your business.
And if you found this episode helpful, will you let me know and will you share it with a fellow business owner who can use some systems magic in their life? And also, I know I say this in the outro every week, but I mean it. Please don’t forget to go and subscribe to the systems and workflow magic podcast on your favorite and preferred podcast player. So you never miss an episode. And I will talk to you all next week with another systems related episode to help you prep.
for 2025. All right, until then stay streamlined and magical you amazing muggle you. Bye. Thank you so much for tuning into the systems and workflow magic podcast. For the full show notes from today’s episode, please visit www.systemsandworkflowmagic.com forward slash podcast. Now if you’re enjoying the podcast, it would mean the world to me.
if you subscribed and left a five-star review on your favorite podcast platform. Your support helps more amazing listeners like you discover the show. Are you a solo business owner feeling stuck when it comes to launching? Now, if you’re tired of throwing spaghetti at the wall and you want to create a sustainable and personalized launch plan that blends your unique personality with intentional marketing, I would love to help.
Let’s work together one-to-one to craft a strategic launch plan that delivers results. Check out the show notes to apply and see if we’re a great fit. Until next time, go make some strategic workflow magic.
