Small Business Budget Planning

Small Business Budget Planning


Whether you use a small business budget software tool to track and project expenses, or establish a template-based spreadsheet that you’ll update monthly, your small business budget can act as a strategic plan, of sorts, that manages risk and makes you a more informed business owner. When you budget consistently, you’re empowered to forecast upcoming financial demands, proactively manage expenses, and establish appropriate sales and productivity goals.

Here are some tips to help you begin — and optimize — your small business budget planning.

Identify what you can count on — and what you can’t

You may not be able to predict when a vendor will be slow to pay, when a competitor will move into the neighborhood, or what trends will impact customer demand. Yet, you can predict which aspects of your budget are sensitive to any of these potential changes, and proactively prepare for them by diversifying your products, expanding your client base or optimizing margins.

Project expenses to be higher than you anticipate

Fixed expenses such as rent are easy to predict from month to month, but it’s wise to build a cushion for any costs that could fluctuate slightly, including utility bills, operating and staffing expenses.Think overestimating expenses will put additional (and unnecessary) strain on your small-budget business? Budgeting is ultimately about trying to control your businesses financials, while simultaneously managing your risk. When you overestimate expenses, you have an additional layer of protection so you’re not struggling to come up with cash at the end of month when you encounter unexpected financial events.

Consistently analyze your sales cycles

Small business budget planning can be challenging the first years you’re in business; you may not have a full understanding of the revenue you’ll generate from one month to the next, or what factors determine demand.But when you monitor sales cycles consistently, patterns will begin to emerge. These analytics help you prepare for changes in demand due to factors such as seasonality, the economy and external competition — so you can proactively prepare your small business budget to adapt to these factors before you’re cash strapped.

Hope for the best, plan for the worst

Regardless of how cash-stable your business may be, an unexpected event related to a natural disaster, theft, lawsuit or medical emergency could present financial demands you’re not equipped to handle. Hopefully, such a crisis will never happen — but if you’ve already taken steps to ensure you have access to a small business funding solution you can access if needed, you’ll have a safety net to turn to in times of financial need.

Establish a separate account for tax payments

Taxes are a reality of running a small business, and can represent a significant chunk of your budget. (Nonetheless, you can’t avoid them). Establish a separate bank account to deposit the cash you’ll need to make quarterly tax payments, along with funds to cover what you owe for payroll, sales and excise taxes. When you keep tax money separate from the rest of your business financials, you’re adequately covered to pay the taxes you owe — and won’t be tempted to dip into the fund if you have an unexpected cash flow shortage. Contact our financial experts at Lendr for more information!


  1. go to these guys

    After study a few of the article on your site currently, and also I truly like your means of blogging. I bookmarked it to my book mark web site listing and also will be inspecting back quickly. Pls look into my website as well and also let me know what you assume.

  2. mortgage loan advisory singapore

    Hi, i think that i saw you visited my site thus i came to “return the favor”.I am attempting to find things to improve my web site!I suppose its ok to use a few of your ideas!!|

  3. Baby Paradise Store

    Wonderful article! We are linking to this particularly great content on our website. Keep up the good writing.

  4. Situs Joker123

    Every weekend i used to visit this web page, because i want enjoyment,
    for the reason that this this web page conations
    really good funny information too.

  5. midori travelers notebook wallet

    It is a topic that may be close to my heart… Cheers! Just
    where will be the contact details though?

    my web-site: midori travelers notebook wallet

  6. fun88

    Wow! This blog looks just like my old one! It’s on a totally different topic but it
    has pretty much the same page layout and design. Great
    choice of colors!

    my blog post … fun88

  7. lo de online mb

    What a stuff of un-ambiguity and preserveness of precious experience concerning unpredicted emotions.

  8. เกม joker

    Hello, its fastidious paragraph about media print, we all be familiar with media is a great source
    of data.

  9. dedicated server

    I know this if off topic but I’m looking into starting my own weblog and was
    wondering what all is required to get setup?
    I’m assuming having a blog like yours would cost a pretty penny?

    I’m not very web smart so I’m not 100% certain. Any recommendations or advice would be greatly
    appreciated. Many thanks

  10. umraniye escort

    Informative article, totally what I wanted to find.

  11. Domino Online

    That is a very good tip especially to those fresh to the blogosphere.
    Short but very accurate information… Thank you for
    sharing this one. A must read article!

Leave a Reply

Your email address will not be published.

You may use these HTML tags and attributes: <a href="" title=""> <abbr title=""> <acronym title=""> <b> <blockquote cite=""> <cite> <code> <del datetime=""> <em> <i> <q cite=""> <s> <strike> <strong>