Are you tirelessly working your socks off to produce a small profit every month? The problem might not be with the amount of money you’re making and a simple solution may just be to spend a little less. Read our blog and discover how budgeting can benefit your business.
Coleman & Co have worked with many businesses in the past and we know what it takes to keep your budget low whilst still being successful. If your business is struggling with overspending, you might need our help.
Of course, when you start to budget, an immediate outcome will be that your business’ expenditure is lowered. Budgeting doesn’t always mean that you should spend a hell of a lot less money, it just means that you have to cut down on spending on items you might not really need.
32% of households prepare a monthly budget, whether it’s buying a cheap version of your favourite food or getting a standard definition film instead of HD. Just because you are a business doesn’t mean there should be exceptions and by spending a little smarter, you will easily lower your expenditure and increase your profits.
Being careful about your budgets and ensuring that each part of your company can only spend a certain amount of money is the easiest way to cut out unnecessary costs. Coleman & Co can help you budget the right amounts for your business.
Know Your Required Revenue
As well as making it much easier to have a positive cash flow at the end of every month, budgeting will also allow you to set the targets you require to make profit. Without budgeting, you will always be unsure how much you will spend one month and how much it could change in the next – don’t put yourself under this kind of pressure!
Budgeting means you know the EXACT amount of money that you will spend. You can then set targets for your business and sales staff based on how much money you need to make and this can all be done before the month starts. Once you have reached your targets for a month, you can relax without having to get any last-minute income because you are worried about unexpected payments.
Plan Your Spending
Creating a budget for your business means you have to think about what you are spending on and when payments will be made. Initially, this might seem like a bit of a pain but once you get into the rhythm of things, creating your spending plan will come naturally. Expenses you must consider as a business include:
- Bills e.g. Gas, Electric
- Supply Payments – Monthly supply and manufacturing of your products
- One Time Payments – New Computer, Furniture etc.
- Fixed Payments e.g. Rent/ Mortgage, Insurance Costs
- Tax Payments
There are many payments that you have to be in control of every month as a business, but by budgeting consistently and creating a real plan for your spending, you can keep all payments in check whilst lowering the amount you spend.
Expand Your Business
Expanding and growing your business is usually a goal in most companies’ future and to do this, you might want a little bit of excess cash just lying about. This will only happen if you manage to keep costs low and revenue high. If you want to become a national, international or even global business budgeting will have to be done so that you can begin to invest in new products, technology and expand your offices.
We aren’t saying that by budgeting you will turn ‘Colin the Hairdresser’ into a global brand, but where there is room for growth, budgeting will certainly help. You can choose to keep the money yourself or invest it back into your business and make even more, but budgeting will always be a great way to kick start growth.
Budgeting is something that we specialise in here at Coleman & Co, if you require our help, we will make sure your business invests in the right way. Get in touch with us for more information on 028 9266 3599 and speak to our friendly team.