If you want to keep your business operating in the black, you’ll need to account for both fixed and unplanned costs, and then create — and stick to — a solid budget. Talk to us today about cash flow planning & budgeting.

Try these six budgeting tips for small business owners:

1. Define and understand your risks

Every business venture has a certain degree of risk involved, and all of those risks have the potential for a financial impact on your company. Make sure you explore these risks & understand their impact.

2. Overestimate your expenses

Budget slightly above your anticipated expenses, so that if you do go over, you won’t be fully unprepared.  What you don’t spend goes back on the bottom line.

3. Pay attention to your sales cycle
Many businesses go through busy and slow periods. If your company has an “off-season,” you’ll need to account for your expenses during that time & be prepared.

4. Plan for large purchases carefully and early

Some large business expenses occur when you least expect them. Planned expenses like store renovations or a new software system should be carefully timed and budgeted to avoid a budget blow out.

5. Remember that time is money, too

One of the biggest mistakes small businesses make is forgetting to incorporate their time into a budget plan. Treat your time like money & monitor yourself too.

6. Constantly revisit your budget

Your budget will never be static or consistent — it will change and evolve along with your business, and you’ll need to keep adjusting it. Regularly revisiting your budget will help you better control financial decisions.

Talk to us today about cash flow planning and budgeting for your business.