Budget Planning Hacks For Small Businesses This New Year

It is the New Year and quite a number of small businesses are already strategizing for 2020. One important item on the list would be planning the budget. A good small business budget will help the business take control of managing and planning their finances. To help in the development of the business budget, you can use a simple startup business budget template if you do not have prior experience. Here are some tips you can use for small business budget planning this New Year.

Have a financial plan

This may sound simplistic, but many small businesses do not have a financial plan. Managing your accounts so that you know what you’re spending and what you’re earning puts you in a strong position, and allows you to forecast your turnover and profits, understand how your business is working, and put plans in place for future budgets. Small business owners that succeed usually have a strong financial plan.

Find out how to raise money

Businesses often succeed through investment – from people within the business, from business angels, from venture capitalists or from business loans. If your business needs a cash injection this year, take the time to look at all the options, because some will certainly be better for your business than others. Taking the time to make a considered decision when you’re raising finance gives you more control over the long term.

Negotiate

Reducing your costs is a key way to make your business smarter and leaner. Always look for ways that you can streamline your spending, whether it’s when you renegotiate your lease, when you take on a new supplier, when you rationalise your IT systems, or when you are buying anything new for your business. Long term savings give you a bit more flexibility in your budget – running small business enterprises is an area where flexibility is key.

Be a savvy marketer

Use low-cost channels to market to your target audience, rather than expensive adverts. Your sales and marketing strategy needs to be based on getting directly to the people you know will buy from you, and you can do this without spending a fortune. In particular, the strategic use of social media channels can boost your profile and your turnover for a relatively low cost of sale.

Set realistic goals

Look across your business at the range of products or services you offer and set a realistic financial target for each. Then break down how you are going to reach that target so that you have a clear plan that will help you to get there. It’s also worth having follow-up goals, so if you reach your target early, you know where you’re going next.

Manage recruitment

Recruiting new staff is an expensive business, so you want to make sure you get the right person the first time. Take the time to make sure you know what type of person you want and what skills you need. Remember that attitude is really important – skills can be learned. And don’t forget your existing employees – making sure they are happy, supported and developed in their role will help you to retain them, adding value to your business and removing the need for spending money on replacements.

Retain your clients

While it’s always great to acquire new clients for your business, it’s important that you work hard to retain and bring added value to the clients you already have. Look after these clients and they are more likely to bring you repeat business or to refer you to others. Run a reward or loyalty programme, offer special discounts or give them pre-launch access to new products, for example.