Budgeting and Planning
Overnight successes are rare in business — it takes time, budgeting and planning. Of course, not all plans or budgets are created equal.
How to Build a Better Business Budget
Building a budget and a plan for your business is vital. Only after you have a budget in place will you know how much money your business has, and how much you can spend to meet your goals.
Make a Spreadsheet
Put together a spreadsheet of your normal costs and income. You can do this using financial software or using a spreadsheet template. Estimate how much you usually spend each month, and how much money your business brings in. If you're already in business, track your income and spending closely for a few months to get an idea of what's normal.
Give Yourself Some Slack
No budget is perfect and sometimes unexpected costs come up, so make sure to give yourself some slack when you're planning. Make sure to put some money into your Business Savings account each month to cover slender months. Be sure you have more than enough saved before opening or expanding your business.
Find Ways to Save Money
Take a look at your budget lines and see if there's anywhere you can cut back. Call your vendors or utility providers to see if there's a way to lower you bills. Don't be afraid to find new suppliers if they'll help you save money in the long term.
Review Your Budget Frequently
Once you've gotten your budget together, don't just file it away. Keep it up as a reminder to stick to your commitments, and reference it whenever necessary. Most businesses find they need to draft a yearly budget and check in with it quarterly or semi-annually. For smaller businesses, though, you may prefer to review it every month.
Top 3 Things You Should Know About Budgeting and Planning for a Small Business
The 3 Components of a Business's Cash Budget
A cash budget is like a view of the future of your company. Here are three components you'll need to make one of your business today:
- Time period − what time frame the budget covers
- Estimated cash position − how much cash you wish to keep on hand at all times
- Estimated sales and expenses − how much you plan to sell and how much it will cost to do so
The Key To Raising Capital for Your Business
When you seek capital funding, remember you're the face of the business: You represent the enterprise. Be prepared, plan ahead and always be ready to show lenders and investors why investing in your business is good business for them.