Dodging budgeting plans can and will result in financial implications as well as loss of earnings while trying to pay for the services of a professional to repair consistency financial obligations. I know it can be off putting but “a stitch in time saves nine”.
A consistency budget requires that a business owner monitors a daily budgeting plan and revises as the week progresses, thereby preparing for expenses as they occur and adjusting where necessary. This is a tool that is required from the moment a business idea is conceived to the daily workings of the business as it exists. This way the overall health of the business is maintained, another way of looking at it, is that you are ensuring your business is taking its daily Vitamins. A consistency business budget ensures that incoming revenue is recorded, while the outgoing expenses are prepared for following a budgeting plan. Monitoring the budgeted figures can be assessed over a period of 12 months, while working on tweaking actual figures realized from the year before. This way a rhythm is achieved and a performance data is at hand in case investors or loan applications are required.
Coming up with your budget figures requires a research study, as a start up or a new business; whether you are opening a hairdressing saloon, a nail bar or a budding entrepreneur, all requires that you do the research. Finding your niche market and sources of revenue, product sales plan, to advertise or not, use of other social media plans, the competitors of the same service or product sales advertised etc. What will your anticipated expenses be, will you be taking out advertising campaigns, marketing strategies or simply day to day expenses of running a business. All these figures need to be inputted into a budget journal, adjust figures according to economic climates, increasing or decreasing accordingly.
For the expenses section, in the budget journal, assign percentages to areas of priority. Document daily, weekly and monthly expenses to include; rents, overheads and or taxes etc. Prepare for expenses well in advance and tweak accordingly. Budget worksheets are very handy when you are documenting incomings and outgoings and it helps with the internal organization of the business. Don’t forget to plan for a contingency fund as part of your expenses and consistently pay into the fund, it helps when things are hard or as a rainy day to have a back up plan.
Written by Tokie L Brown
About The Author
Tokie Laotan-Brown is the author of the book “10 Steps to Managing your household budget” which provides readers with useful financial management tools to assess how their household expenditure is utilised.