Only half of the small businesses in the country successfully make it past the 5-year mark.
Opening a small business is no small task. It takes months of planning and research, and it takes even more patience and wisdom. Don't forget to also find a strong support team to back you up!
Whew, seems overwhelming doesn't it? Your mind is moving at 100 mph as a small business owner, but you can't let it distract you from properly budgeting.
Below are 5 small business budgeting reminders to help you out. Properly handling your money as a small business can save you big time.
5 Tips For Better Small Business Budgeting
1. Develop an Annual Master Budget
Before doing anything, make sure you have an annual master budget to refer back to throughout the year. The small business costs will catch up with you quickly if you don't keep track of the numbers.
Start by listing all major costs, leaving wiggle room for emergency repairs and upgrades. Think about supplies you will need to buy and employees that need to be paid.
After you complete your master budget, run a variety of budget reports for all the separate areas of your business.
2. Know Your Income Sources
Even though it seems obvious, knowing all your income sources is crucial. It is important because to know how much you can spend on small business costs, you will need to know how much you make.
How many different kinds of products are you selling? How many services do you offer? How much do you make off each sale?
3. Plan for Surprises
To stay ahead of the game, put some wiggle room in your budget for surprise investments.
You might need to fix broken machinery, or you might want to buy a new register for the store. Owning a business comes with a handful of costs you never expected.
Your business might even get so big you will surprise yourself by looking into a shipping container cost. Who knows? Always be prepared for growth opportunities and requirements.
4. Consult a Professional if Needed
If the numbers seem off to you, trust your gut. Don't hesitate to consult or hire a professional. One small mistake could result in a big disaster.
You might even consider having someone permanently on staff to help out with the books. This way, they will always be around to help you with your small business budgeting needs.
5. Edit the Budget
Always remember to revise your budget as your business grows or declines. Make necessary cuts or purchases after your revisions.
You might need to let go of a couple of staff members and utilize freelancers, automation, or outsourcing instead. Sometimes tough choices need to be made.
Boost Business With Small Business Budgeting
Successful small business budgeting could be your answer to a quick business boost. Grab a cup of cheap coffee, and get to work on your SMB budget!
Don't forget to create an annual master budget for your company, and revise it as it feels necessary. Consult a professional if you need a little bit of help, and always remember to be ready for a surprise.
If you are looking for more business budgeting tips, check out the rest of our site. Bootstrap Business is all about launching and growing your company on a shoestring!
