With the new year right around the corner, it’s time to consider things you need to do to be smarter in your business. Are there things you are overestimating in your day to day tasks? Are there projects that you feel could change your expenses or how things are going? Today, we’re going to jump into these 7 Small but Smart Business Budgeting Tips and hopefully you will find some value to head into the new year with.
To protect against volatility in revenues, expenses and unpleasant surprises, creating a budget is vital. Protect your business by creating a budget that works.
7 Small but Smart Business Budgeting Tips
- Develop an emergency plan – understand and identify the risks of your particular business. Setting aside funds in case of natural disasters or adjusting your insurance, are types of protection you can put in place. Being able to assess and understand what can go wrong in the environment you operate in. Prepare for potential regulatory or legislative changes that could arise; for example: taxes, health care, overtime pay, minimum wage.
- Overestimate how much time each project will take if your business revenues are based on time. Completing early, you will be seen as efficient; if on time, as giving reliable estimates.
- Being able to anticipate potential changes in overestimated expenses.
- Understanding your sales cycle to plan for off-season sales. Increase marketing budget for downtimes.
- By using the latest data to plan investments for growth based on financial forecasts.
- Continually revisit your budget; make it flexible to ensure it grows with your business, always including unforeseen expenses and emergency funds.
- Regularly saving funds for unexpected expenses and taxes.
Now you’ve seen our small but smart business budgeting tips, what do you think? Are you ready to take on 2020 like a pro and grow your business?
Looking for money information or tips? Check out our post on The Importance of Documenting Processes and Systems