5 Tips to Plan Your Blockbuster Budget
Nov 23, 2022
Either you are starting your business or running one….
If you don't plan your spending constantly you will find yourself over budget in no time.
Budgeting well can help your business meet your profit target. It is the most effective way to avoid costly surprises.
So here are five tips from my experience that will help you elevate your budget.
Tip #1 Analyze your companies financial situation
Before making your budget, you need to analyze cash flow in your company, look into your balance sheet and try to find out where cash flow can be improved.
You can begin this process with simple things like
average order value
cost per lead
return on paid traffic
Then you can move to complicated things like sales lead volume, inventory level etc.
This will give you an idea of what's working best for your business and will also help you cut a few things off your budget.
Tip #2 Plan for scenarios beforehand
No matter the scale of your business, you will come across some bad times.
Be smart enough to analyze those times ahead as well as prepare for worst case scenarios.
Also try to keep your budget flexible for those times as this can help you stay one up ahead of your competitors and adapt to market changes.
Tip #3 Cash over Credit cards
I know how it feels to swipe credit cards for all your small needs.
So easy right?
But don't forget, every small transaction adds up.......with INTEREST.
And by the time you realize your small amounts of debt that will turn into a bigger amount which will disturb your budget at the end of the month.
So if you are planning a budget, credit cards could be a problem.
Using cash/debit cards instead of credit cards will help you see the real amount of money you are spending.
Tip #4 Outsource on a fixed rate
By outsourcing, you only pay for the services you use and it helps you to save money while growing your business.
Also you don't have to make a separate budget on hiring, training and retaining.
But make sure they don't charge hourly rates as you have no idea how much that service will cost you….
Ask them to quote a fixed price so you don't have to adjust your budget again and again.
Tip #5 Review your budget every month
A review of your budget every month can help you stay on track with your finances.
In essence, a budget is a forecast of what will happen; take the time to go back and recount what actually did happen.
Where did you overspend?
Where did you save?
What can you do differently next month?
While it’s important to review your budget every month, you’ll also probably need to re-calculate your budget every 3-6 months, or whenever something changes dramatically in your financial life.
#Special Bonus Tip
So here it gets a little personal.
Decide on an amount you’d like to save each month and include it as an "expense" in your budget.
Set up a separate savings account and transfer or deposit money into it every month.
Your savings can be used for short-term goals or long-term goals.This money can also be used in case of an emergency.
Conclusion
So here are 5 of my best tips.
From analyzing cash flow to outsourcing on a fixed rate, you can follow all my tips one by one. By doing this you can make your budget more realistic to stick to.
I am also including an additional tip which is really important being a woman, even more if you are a mom like me.
If you need professional help..join me in The Career Mompreneur Money Pro System & Framework in our Gold Membership (for individuals) or Platinum Membership (for business owners), I will walk you through a detailed budget analysis that will help you identify :
1. Variable expenses you can cut back on.
2. Help you with a new monthly budget for you to follow specifically based on all your financial goals.
3. I will ensure you have positive cash flow every month so you can invest in what works best for your business.
Which of these tips did you find the best? Let me know below✨
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