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But developing a working business budget probably doesn’t rank very high on the list of activities farriers would choose to engage in during their spare time. In fact, many farriers probably consider this task to be among their most unpleasant chores.
That’s a mindset that can lead to financial problems. Too many farriers do not plan or follow a budget. When they need something or simply desire it, they just buy it. But without an actual, written budget, it is very unlikely that they are giving any thought to things such as incorporating tool and equipment replacement expenses and other costs into their prices.
Part of the prices you charge for your services should incorporate the cost of planned equipment-and-tool replacement. Budgeting for replacing equipment before it is obsolete or reaches a point where it can’t be used is not a complicated process, but can seem like a daunting challenge if you are not familiar with the process.
The easiest way to determine how much you need to save in order to purchase new or replacement equipment without straining your finances is to follow these steps.
1. Put your budgeting plan into writing. This will create a measurement tool against which you can monitor your savings…