As a small business owner, it is understandable that you are concerned about monthly and annual budgets. You do not typically have a lot of wiggle room when it comes to determining whether or not you will experience a profit or loss for the year. In order to be proactive, you must plan for as many eventualities as possible and work to ensure that every dollar is accounted for at the end of the day. Here are four budgeting tips that should help your small business get well on the way to sustained profitability.
Use Pictures Around the House for the Reception Area
If you have an office or an area where you receive clients, you will want to add some pictures to brighten up the space. Do not feel that you necessarily need to buy these. That is money that you could use more effectively elsewhere. Instead, look around your house to see if you have any pictures that you can use. Place those in reception and save the money for interim.
Be Careful with Ordering Too Much
You will want to keep inventory on hand, but be careful about ordering too much too soon. While you do want to make sure you always have products available for your customers, it is not always prudent for a small business to have too much inventory on hand. That would mean that you have spent money that may take several quarters to recoup. This is not a good strategy when you are just starting out.
Know Your Investments
To keep track of your inventory, a barcode inventory system will become a life saver. This is a way to know when you need to order replacement items to have on hand without having to use a lot of manpower to do so. This technology has advanced rapidly in recent years, so you will save money by investing in such a system up front.
Maintain a Small Staff As Long As Possible
While you will always be tempted to hire more staff in order to take some pressure off of your own shoulders, it is not necessarily wise to do so. Stay small, even when initial sales are great. Make sure that you are ready to expand before you invest the dollars required to hire more staff.
These four budgeting tips will help your small business get out of the starting gates. This is essential to get on the path required to bring in more money than you spend. Once you do that, you can look at adding other items to the budget that will help you grow at a measured and sustainable rate.
Kara Masterson is a freelance writer from West Jordan, Utah. She graduated from the University of Utah and enjoys writing and spending time with her dog, Max.