Six Tips for Smart Budgeting
As a small business owner, you know that a good budget is essential to success. But it's easy to make some fundamental mistakes, experts say. Nicole Fallon Taylor, with BusinessNewsDaily.com, offers six tips for getting the budget right.
• Define and understand your risks. Understanding the long-term and short-term threats to your business will give you a clear picture of insurance and emergency planning needs.
• Overestimate expenses. Budget above line-item costs to cover unexpected extra expenses.
• Pay attention to your sales cycle. Don't forget to account for expenses during your "off" sales season. And use that slow time to ramp up marketing efforts.
• Plan for large expenses early and carefully. Major outlays like store renovation or new software should be planned out well ahead so they don't place a major burden on your business.
• Time is money. Account for the time you will spend working on projects.
• Revisit your budget. A budget is not static and you should regularly—maybe monthly—review it and adjust as your profit and growth pattern changes.