Let’s talk about small business budgets for a second. Think about all the ways budgets help you.
If you’re a business owner we are sure you think about this ALL the time. Preparing a budget can help you deal with problems and issues that might come up. Something like sales, rent, maybe you need a window replaced…
Budgets also help you with staying up to date on current operating costs and other numbers.Having a budget helps make sure you have enough for these things.
Another thing budgeting helps with – is growth. You can’t grow if you don’t know how much you have – or even worse if you spend all your money. Having a budget helps you plan out steps that will grow your business.
So, as much as we think of budgeting to be a bad thing – it’s not. It’s really smart! We’ve gathered some tips we hope you will find useful.
Make a list
1: The first thing you will need to do is think of all your expenses. Bills, inventory, advertising, supplies, payroll etc.
Depending on where your business is size-wise the list will vary.
You might not have any expenses yet if you’re brand new. But, for a larger business – you might have a good idea of your expenses. If you haven’t started your business yet – that’s okay. Just make a list of things you know you will for sure need to spend money on. You can also check out the Small Business Administration.
Know What Does What
2: Know what expenses help growth. A good idea is to make a separate list of what expenses help your business grow and boost profit. Things like advertising – for example buying social media ads, or paying for whiteboard videos.
Remember, tracking all your expenses might seem crazy and stressful at first. It will get easier the more you do it and If you find it to be too difficult to handle on your own you can always download accounting software. Two recommendations are Quickbooks and Xero.
Tracking your expenses will always help you see how your revenue increases or decreases over time. This way you will also be able to see what is working and what isn’t. Knowing what works will help you keep cash flow steady and maintained.
Check Your Dollars
3: Make sure you’re checking your balance and accounts regularly. This will give you peace of mind but also help you see how much you are spending each week. If your spending amount needs to change you need to know how much you have. Not knowing this information could easily put you in financial danger.
Some business owners spend allotted amounts every month on advertising or events. But, only because they know how much they have and that they can afford it. Keep separate accounts for certain things is also a good idea.
We hope this short and sweet blog helps you out. If there is anything more we can do – please feel free to let us know. Just stop by our contact page. Speak soon!