Many small business owners create goals at the beginning of the year however, many don’t create a budget, but every small business owners should have one.
I know for many, the idea of creating and following a monthly budget can feel too restrictive, boring and not exactly sexy. And for others, they simply don’t know where to begin or understand how to create, let alone follow a budget.
What if creating and following a monthly budget was easy? It is!
What if following a monthly budget would help you generate more revenue and profit in your business?
Good news, my fellow business owner! It will!
In this article, I’m going to share how easy it is to create and utilize a budget that doesn’t feel restrictive or boring but one that increases your profits.
First things first, you can delegate the bookkeeping, accounting and payroll functions in your business but you, the business owner, should always know your numbers and the financial position of your business. Doing it any other way, leaves the door open for too many things to go wrong.
- Decide on a system to track and monitor your budget monthly. There are free and paid resources available. Find a system that works well for your industry and business needs. If all else fails, start with Excel or Google Docs.
- Set your revenue goals for the year and by month. Review your current and previous years results to identify trends.
- Identify all business expenses. You can pull bank statements for the current year as well as the previous year. This will help identify monthly expenses and any surprises that are may occur throughout the month.
- Decide on your profit goals. This is pretty easy once you identify your revenue and expense goals. It’s a simple calculation (Revenue Less Expenses).
- Use the budget. Don’t just create it and leave it stored on your computer. Print it out each month. Refer to it before making decisions.
- Communicate the budget and business goals with your team. Get them excited about the direction the company is going and ask for their feedback and ideas on how to hit those goals.
- Find a way to reward yourself and your team for hitting the targets set by the budget.
If you’re ready to design a plan to take your business to the next level, then let’s talk. Reserve your complimentary strategy session here: www.ConnectWithShontaye.com. Limited spaces available.