Business & Financial Planning for 2026

Financial planning is crucial for operating a business. A business needs a written business plan. This plan should be accessible to anyone who may need to manage the company in the owner/manager’s absence. 

The financial piece of the business plan should include the following:

• Budget
• Costs/Expenses
• Income
• Return on Investment (ROI)
• Designated checking and savings accounts for the business (even if a sole proprietor)
• Designated credit card for the business 
• Possible Simplified Employee Pension (SEP) plan (401)

To prepare a financial plan for 2026, review 2025’s financials and business, including products and services, pricing, and ROI. Specifically, look at those areas that brought in less income, cost more than you planned, or created flatlines between income and expenses. Also, look at areas, such as services and products, that generate a steady income. 

For example, consider factors such as marketing, which may include expenses for advertisements, exhibit booths at conferences or job fairs, or conference attendance. Look carefully at each expense and compare the cost to the ROI. Suppose there is no ROI or minimal ROI for a specific marketing ad, for example. In that case, you must decide whether the marketing ad is valuable enough for you to invest dollars into it during the following calendar year. Review the expense and choose to shift marketing dollars to another category or delete the expense. 

Perhaps you can speak to the ad owner and determine a less costly marketing campaign, or decide to discontinue the ad completely. Then you can compare the ad cost and any associated loss of ROI in the 2026/27 review period. 

Consider where else you may allocate funding, including items such as new education, credentials/professional development, dues and memberships, conference attendance, transportation, a new website, conference swag, and more. 

For areas that generate ample income, review the services, products, and marketing streams to bolster these income streams for 2026.  If you decide to stop an ad that did not deliver ROI, analyze the market and determine a new advertising course that will further promote those services and products that did deliver high ROI. 

Flatlines

If your business is flatlining, analyze the reasons to determine the cause. Consider the following:

• Marketing costs more than revenue
• You are not charging enough for the services provided (increase your fees and income; if you complete a new credential, increase your fees; if you attend a conference or obtain professional development, increase your fees). Charge based on the value you deliver
• You are targeting the wrong market/client population – reevaluate your target market and marketing messages
• The economy has changed – and you need to change with the marketplace

Budget

To build your budget, include the following: 

• Capital expenses like a computer, website development, smartphone, and office space
• Maintenance expenses like website maintenance, computer maintenance, software maintenance, QuickBooks (or similar platform)
• Recurring expenses like state LLC renewal fees
• 1099 expenses like a virtual assistant, bookkeeper, tax accountant, résumé writer, attorney, or creative artist
• Office expenses, including a printer, desk, ink, paper, pens, notebooks, or swag for conferences
• Savings
• SEP contributions
• Taxes

The Coffee/Fast Food Factor

Just a side note for comparison – if you drive through your favorite coffee house 5 days a week at $5.50 a day per cup ($1430 a year), or $8 for fast food at lunch every day ($2080 a year), that adds up fast. I am not saying don’t do it – I am saying look at the numbers. Do the math and determine priorities.  Where do you want your money to go?

Calculate Your Actual Hourly Rate

This is an interesting exercise. Many of my CPCC coaches ask me how to charge for services. They want to know the best hourly rate to charge. To calculate a good rate, consider the following:

• Create a family budget and determine how much money you need to live on each month at a minimum. Include mortgage/rent, food, utilities, car insurance, car payment, gas, extras, credit card payments, eating out, savings, lawn service, security service, and vet bills. Write down every expense (or use a budget tracker). 
• Create a business budget.
• Combine the two bottom lines of expenses. This number represents the minimum monthly income required to sustain yourself and your business. Divide that number by 4, and divide that number by 40. That is your hourly rate. For example, if your bottom-line income requirement between family and business is $5000 per month, then your hourly rate is $31 at 40 hours per week. (Some people find that they are only making $15 an hour – it is a very revealing exercise.) Therefore, you will want to double that amount to $62 an hour (or more) to effectively double your income for savings, paying off debt, planning to purchase a new car, taking a vacation, or adding to the business budget for professional development or a new computer. 
• Don’t forget that for every hour you spend face-to-face with a client, you are working several hours in the background to write a résumé, review an assessment, conduct research for the client, prepare for interview prep, write after-action reports, and more. So, 40 hours of face time may equate to 80+ hours of actual work time – be sure to schedule your time carefully. 

A Comment About Taxes

Don’t forget to save 30% of every dime you make for taxes. Taxes come along every March/April and quarterly, depending on your sole proprietor, LLC, 1099, or payroll status. If you save 30% of your income at the beginning, then you will most likely never get hit with a large, unexpected tax bill. And, if you find yourself in a lower tax bracket, then any savings above your tax bracket are savings for next year’s taxes, and for use in investing in marketing, business expenses, purchases, or the SEP as needed. 

Annual Review

Schedule a time to review your 2025 financials and prepare for 2026. Determine your best income streams and ROI, and enhance those services; remove services/products or budget items that do not provide ROI, and speak to your bookkeeper and or accountant to make decisions for purchasing capital equipment and spending marketing dollars for 2026.