This document helps music store owners create and manage a budget to track spending and support business growth. By planning and reviewing expenses regularly, you can stay on track, avoid overspending, and focus on what works best.

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Step 1: List All Expenses 

Write down everything we spend money on. Here are some examples:

• Store Expenses:
  
  • Rent, utilities, and insurance.
• Marketing Costs:
  
  • Ads, social media boosts, and printed flyers.
• Product Costs:
  
  • Buying new instruments, accessories, and supplies.
• Event Costs:
  
  • Snacks, decorations, or renting space for special events.

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Step 2: Plan the Budget 

Decide how much money to spend on each category. Here’s an example:

Step 3: Track Spending 

Write down what we actually spend and compare it to the budget. Here’s an example:

Step 4: Measure ROI (Return on Investment) 

See how much money we make from what we spend. Here’s how:

• Marketing ROI: Check if ads bring in more customers.
  
  • Example: Spend $100 on ads, make $300 in sales = $200 profit.
• Event ROI: Look at how many sales come from special events.
  
  • Example: Spend $50 on an event, make $150 in sales = $100 profit.

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Step 5: Adjust the Budget

 If something isn’t working, change the budget. Here’s how:

• Spend less on things that don’t bring in sales.
• Spend more on things that work well, like ads or popular events.

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Example: Budget Update Plan

1. Review spending at the end of each month.
2. Write down what worked and what didn’t.
3. Adjust the budget for next month based on the results.

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Next Steps

1. List all expenses for this month.
2. Set a budget for each category.
3. Track spending every week.
4. Look at what works best and adjust the budget for next month.