Four Practical Ways to Make a Business Budget
Build a successful business in terms of financial of course be hope for everyone. Small business can be run by business people who only have limited capital alone. Often small businesses that initially small becomes very big business. However, not infrequently also small businesses become worse because of operating expenses that they must bear swell.
In order to run a business that can continue to run and develop, here are some tips to make budget business businessperson.
1. Check the industry standard
Businessmen need to really study the industry standards that are run so that it can calculate the percentage of revenue to be allocated as an investment or savings.
Investment, because small businesses have competitors that are very diverse and should continue to grow and innovate.
Savings, because small businesses are particularly vulnerable to industry slump.
2. Create a spreadsheet
Write down every point of your business income and expenses into a spreadsheet using Microsoft Excel.
The result businesses can predict whether the total rupiah of revenue could be allocated to the raw material and other costs.
By doing so, you can find out how much budget you can provide when looking for income.
As well as items such as taxes, rent, insurance and so forth.
3. Have the numbers of tolerance
Although you have calculated the revenue growth rate of business you run, or specify expense costs, but still you can not control it.
There is a possibility of several things will miss your estimates.
Therefore, it is important for you to prepare a number of tolerance and ascertain whether the figure is more than enough to make your business survive when hit by unexpected costs.
4. Review your business regularly
When some companies arrange regular annual budget, small business owners actually have to do more frequently than large companies.
For example, within one or two months. Why is that? Because small businesses are more likely unstable.
Some unexpected costs can arise at any time and can damage your cash flow!