Budgeting Your Pokemon Business Money

"I spent all my profits buying new inventory, now I can't pay for shipping supplies." This is preventable. Let me show you simple budgeting that keeps your Pokemon business running smoothly.

What is a Business Budget? (Simple Definition)

Budget: Planning how to spend your business money before you spend it

Not complicated. Not restrictive. Just smart planning.

Example:

Without budget:

• Spend whatever, whenever
• Run out of money unexpectedly
• Can't buy inventory during deals
• Stress

With budget:

• Know exactly what you can spend
• Never surprised by expenses
• Money available when needed
• Control

Fixed Costs vs Variable Costs

Fixed Costs (Same Every Month)

Examples:

• Platform subscription fees: $30/month
• Business bank account fee: $10/month
• Storage unit (if used): $75/month
• Software subscriptions: $15/month

Total fixed: ~$130/month

Predictable, plan easily

Variable Costs (Change Based on Sales)

Examples:

• Inventory purchases: $200-2,000/month
• Shipping supplies: $50-300/month
• Platform selling fees: 10% of sales
• Shipping costs: Varies per sale

Total variable: Depends on business activity

Unpredictable, need buffer

Monthly Budget vs Project Budget

Monthly Budget (Ongoing Operations)

What it covers:

• Regular monthly expenses
• Expected inventory purchases
• Normal selling costs

Review frequency: Monthly

Purpose: Day-to-day operations

Project Budget (One-Time Activities)

Examples:

• "Buy $1,000 worth of vintage cards at card show"
• "Stock up for holiday season with $2,000 investment"
• "Submit 50 cards for grading ($1,500)"

Purpose: Special investments

My approach: Monthly budget for regular operations + separate project budgets for big investments

Why Budgets Help You Make More Money

Sounds backwards: Budgets restrict spending, how does that make money?

Reality: Budgets optimize spending

Without budget:

• Overspend on slow-moving inventory
• Run out of money during buying opportunities
• Pay unnecessary expenses
• Lose track of profitability

With budget:

• Buy right inventory at right time
• Money available for good deals
• Eliminate waste
• Clear picture of profit

My experience: Adding budgeting increased profit 30% first year. Not from making more sales, from smarter spending.

Common Budgeting Mistakes to Avoid

Mistake 1: No Budget at All

"I'll just see what happens"

Result: Chaos, overspending, lost opportunities

Mistake 2: Too Restrictive Budget

"I can only spend exactly $500, not one penny more"

Result: Miss good deals, inflexible

Better: Budget ranges, not fixed amounts

Mistake 3: Not Tracking Actual vs Budget

Create budget, never compare to reality

Result: Budget becomes useless, no learning

Better: Monthly actual vs budget comparison

Mistake 4: Forgetting Irregular Expenses

Budget for monthly costs, forget annual fees

Example: PayPal $30/month subscription, plus $100 annual eBay store fee

Fix: Track ALL expenses, including annual, quarterly

Mistake 5: Not Building Emergency Fund

Spend every dollar, nothing saved

Reality: Unexpected expenses happen (computer breaks, platform suspends account, etc.)

Fix: Emergency fund = 1-3 months of fixed costs

Creating Your Pokemon Business Budget (Step-by-Step)

Step 1: List All Income Sources

Month 1-3 (Starting Out):

• Card sales: $300-500
• Total: $300-500

Month 6-12 (Established):

• Card sales: $1,000-2,000
• Total: $1,000-2,000

Be conservative on estimates

Step 2: List Fixed Expenses

Essential:

• Platform fees: $30
• Tracking software: $0 (spreadsheet)
• Business bank fees: $10

Optional:

• Storage unit: $75
• Inventory software: $15

My Year 1 fixed costs: $40/month (minimal to start)

Step 3: List Variable Expenses

Based on expected sales volume:

Sales: $500/month

• Inventory purchases: $300 (60% of sales)
• Shipping supplies: $30 (6% of sales)
• Selling fees: $50 (10% of sales)
• Shipping costs: $40 (8% of sales)

Total variable: $420

Step 4: Calculate Profit

Income: $500 Fixed costs: $40 Variable costs: $420

Profit: $500 - $40 - $420 = $40

Profit margin: 8%

Is this good? For Month 1-3, yes. You're learning and building.

Goal: Improve margin to 20-30% by Month 6

Step 5: Plan for Reinvestment

Of your $40 profit:

• Reinvest: $30 (75%)
• Keep as profit: $10 (25%)

Why reinvest? Grow inventory, grow sales

Year 1 strategy: Reinvest 75% Year 2+ strategy: Reinvest 50%, keep 50%

Essential Pokemon Business Expense Categories

Inventory (Largest Expense):

• Card purchases
• Collection buys
• Sealed product

Budget: 40-60% of revenue

Selling Costs:

• Platform fees
• Payment processing fees
• Return costs

Budget: 10-15% of revenue

Shipping & Packaging:

• Mailers, top loaders, sleeves
• Shipping labels
• Postage

Budget: 10-15% of revenue

Equipment & Software:

• Computer/phone
• Tracking systems
• Photography equipment

Budget: $50-200/month

Marketing (Advanced):

• Ads (if used)
• Website hosting
• Social media

Budget: $0 to start, $100-500/month later

How to Estimate Income from Pokemon Sales

Conservative Method (Recommended):

Starting inventory: $500 Expected monthly turnover: 50% Expected sales: $500 × 50% = $250 inventory sold Average markup: 30% Expected revenue: $250 × 1.30 = $325/month

Optimistic Method (Risky):

Assume 100% inventory turnover, 50% markup

Usually results in disappointment. Use conservative.

Planning for Slow Months and Busy Seasons

Slow Months (January-March)

Expected sales: 60% of average

Budget strategy:

• Reduce inventory purchases
• Maintain cash reserves
• Use time for organization/listing
• Don't panic

Busy Months (November-December)

Expected sales: 150-200% of average

Budget strategy:

• Stock up in September-October
• Extra shipping supplies
• Prepare for higher volume
• Cash in on peak season

My typical year:

• Q1: 20% of annual revenue
• Q2: 25% of annual revenue
• Q3: 20% of annual revenue
• Q4: 35% of annual revenue

Budget accordingly

Emergency Fund for Pokemon Business

What is it? Money set aside for unexpected expenses or slow periods

How much? 1-3 months of fixed costs

Example:

• Fixed costs: $40/month
• Emergency fund target: $120 (3 months)

When to use:

• Computer breaks
• Unexpected shipping cost increase
• Platform suspension (need to pivot quickly)
• Slower sales than expected

How to build:

• Set aside 10% of profit each month
• Takes time but protects business

Peace of mind is worth it

Sample 3-Month Budget (Starting Pokemon Business)

Month 1

Income:

• Card sales: $300

Fixed expenses:

• Platform fees: $30
• Bank fees: $10
• Total fixed: $40

Variable expenses:

• Inventory: $200
• Shipping supplies: $25
• Selling fees: $30
• Shipping: $25
• Total variable: $280

Net profit: $300 - $40 - $280 = -$20 loss

Expected for Month 1, building foundation

Month 2

Income:

• Card sales: $500

Expenses:

• Fixed: $40
• Variable: $350

Net profit: $110

Progress!

Month 3

Income:

• Card sales: $800

Expenses:

• Fixed: $40
• Variable: $520

Net profit: $240

Growth trajectory

Tools for Budget Tracking

Free:

• Google Sheets budget template
• Manual tracking
• Cost: $0

Paid:

• QuickBooks Self-Employed: $15/month
• Wave Accounting: Free
• FreshBooks: $15/month

My recommendation Year 1: Google Sheets (free, sufficient)

My recommendation Year 2+: Wave or QuickBooks (automated, professional)

The Bottom Line

Budgets aren't about restriction. They're about:

• Control
• Planning
• Optimization
• Peace of mind

5 minutes per week reviewing budget prevents:

• Running out of money
• Missing buying opportunities
• Overspending on wrong inventory

5 minutes per week enables:

• Smart spending decisions
• Growth planning
• Profitability tracking

Every successful Pokemon business I know budgets. Every struggling one doesn't.

Ready to Build Your Pokemon Business Budget?

This is Module 2.5 of Week 2 in the Pokemon Business Startup Course.

Complete course includes:

• 3-month budget template
• Budget vs actual tracking sheet
• Expense category guides
• Monthly review checklist

Enroll in the Pokemon Business Startup Course →

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Module 2.5 of Week 2 - Pokemon Business Startup Course