You generally have room in your budget for small employee rewards, like a gift card or lunch out with the team.
Your annual projected budget report includes a few versions that consider different sales and expense levels to better prepare for missed estimates and/or unplanned purchases.
Each month, you check on your budget or variance analysis to make sure that your expenses and cash flow are in line with your business’s needs.
You generally know where you can cut down costs in a typical month to stay in line with your budget without having to make late payments or miss other important expenses.
I struggle to set a price for my products or services.
Low or inconsistent cash flow has affected my ability to pay bills and other expenses on time.
It’s difficult to predict what I can reasonably borrow since I don’t have a good idea of what my income will be for the near future.
I’m not afraid to pull the plug on a product or service that’s underperforming or isn’t worth the time investment for the profit I make.
I have room to support my employee training and development when it supports their core roles and responsibilities.
My budget is based on goals of where I want to be, and not based on predictions of how my business previously performed.
Quick Quiz to Check In On Your Business’s Budget
Your business’s budget seems like it’s right where it should be!
Not only do you have the flexibility to adjust when something unexpected comes up, but you have room to promote employee engagement and training when needed. Great job!
Your business budget might be a little tight, but not totally unrealistic.
It seems like you have some flexibility to adjust when you miss targets or to cover an unexpected purchase. Regular check-ins should help you stay on track; review your departmental budgets and actual expenses every month at a minimum.
Your current budget might not be very realistic for your business.
Your current budget might not be very realistic for your business. It might be beneficial to start from scratch — think of a budget as a tool to help your business grow and not something that limits you. Once you know more of the fine details about how much it takes to run your business, you can strategically manage your finances with better control.