What comes to mind when I say the word BUDGET?

It probably isn’t anything fun - right?

What exactly is a budget anyway? According to Zoho.com, a “business budget is a spending plan for your business based on your income and expenses. It identifies your available capital, estimates your spending, and helps you predict revenue. A budget can help you plan your business activities and act as a yardstick for setting financial goals. It can help you tackle both short-term obstacles and long-term planning.” 

Now that we know what a budget means let’s look at 5 things to consider when creating a workable budget:

• Practical Revenue Projections - It is great to aim for the sky but don’t aim so high that your goal is unattainable. It is a good idea to reflect on your industry trends, market conditions, market research, and your past history to develop your revenue projections.

• Review your expenses - Are you aware of your spending habits and how they impact your cash flow?

• Plan for an emergency - Do you have emergency funds available for your business? In the same way, you have a savings account with funds set aside for emergencies in your personal budget, your business budget needs the same contingency funds.

• Pay attention - No budget plan is useful if it is created and ignored. Make a note on your calendar schedule to review your budget at a regular interval that works for you. This will help you to celebrate your wins and quickly get back in alignment if you are off-track. 

I hope these 4 tips will help you to create a workable budget that makes sense for you & your business. 

Keep IT Sunny~