Does your small business struggle with cash flow problems? Creating a balanced budget is the key to eliminating extra spending and improving your business’s cash flow. Here are three simple steps to building a better budget for your small business.
Creating a budget doesn’t have to be complicated. Use a budgeting worksheet or create a spreadsheet that’s customized to your small business. There are also a number of website and apps such as Mint that can help you keep track of monthly spending patterns and monitor your checking or savings accounts.
As you begin creating your small business budget, start by listing the profit you want to make. Then, write out each of your recurring monthly expenses, such a rental fees, electricity bills, and office supplies. It’s a good idea to underestimate the amount of revenue you will receive and overestimate your spending. This way, you can set aside extra earnings into an emergency cash fund for your small business.
When you first create a budget, it’s important to be flexible and make adjustments each month. If your expenses were higher than your revenue for the month, use your budget as a tool to identify areas to cut costs. For example, consider cutting back on equipment and hiring expenses by outsourcing labor to a fulfillment and assembly partner. Outsourcing providers like Ohio Valley Goodwill Industries can help your business reduce overhead costs and stay within your budget.
To learn more about outsourcing with Ohio Valley Goodwill Industries, contact us today. We’d be happy to give you a free tour of our facilities and find a solution for your small business needs.