6 Tips for Budgeting for your small business

If you are now the owner of a small business by way of purchase or startup and do not know to deal with the budgeting and book-keeping aspect of owning a business, then keep reading!

1. Standards

What type of business are you running? Is it a bakery, cafe, antique shop? Once you figure out where you stand, you will be able to know what taxes—if any—you’ll have to pay. Do this before you get established to know if you’ll be able to handle it.

2. Make a spreadsheet

Spreadsheet is crucial; it will tell how much money will be made if do decide to go ahead to open the business. From there, you’ll be able to tell how much money goes where, for what and at what time.

3. Cutting costs

This is when you finally open doors! Reduce or eliminate spending in areas that can take it. For example, if you are dedicated to your business and are there all day, you might not need a second set of hands just yet. That extra money will now be put towards paying your bills such as rent, utilities, etc.

4. Pen in some slack

Bare in mind that you do not control the market or how people decide their money, ie, there will times when you do not reach your goal revenue and that is totally normal.

5. Overview of the business

It is your sole responsibity to keep an eye on your business to make sure that you are not losing money: take stock every other month for a new business.

6. New, affordable suppliers

Be willing to take risks in finding new suppliers. Whether it is to spend a little extra for better quality or shopping for more affordable goods. Either way, make sure that you can absorb the cost and not put it on your customers especially since you are still new. This is a sure way to drive them away.

Good luck with your new business and let us know if this article helped you in any way.