Australian Debt Consolidation » business

Small Business Budgeting – Major Mistakes to Avoid Business Suicide!

admin — Wed, 12 Jan 2011 14:38:30 +0000

by sidehike

Small Business Budgeting – Major Mistakes to Avoid Business Suicide!

Small Business Budgeting â Major Mistakes to Avoid Business Suicide!

Free Online Articles Directory

Why Submit Articles?
Top Authors
Top Articles
FAQ
AB Answers

Publish Article

0 && $.browser.msie ) {
var ie_version = parseInt($.browser.version);
if(ie_version Hello Guest
Login

Email

Password

Remember me?
Lost Password?

Home Page > Business > Small Business > Small Business Budgeting â Major Mistakes to Avoid Business Suicide!

Small Business Budgeting â Major Mistakes to Avoid Business Suicide!

Edit Article |

Posted: Nov 19, 2009 |Comments: 0
|

Small business budgeting is crucial, especially in this slow economy. Because budgeting affects both the income and expenses of a company, it is necessary for the survival of today’s small business. The obvious and biggest mistake made is not to have a budget at all-this is business suicide! Having said that, it’s never too late to start a budget of your own while keeping in mind these major mistakes to avoid:

Be realistic when establishing your budget. Start with your best estimate of your sales revenue target and expenses, both fixed and variable. Variable expenses, such as travel, promotional or staff events can change from month to month but should be estimated as closely as possible. Small business budgeting should also include the cost of goods sold, if applicable. Don’t forget to leave some wiggle room for the unexpected repair or replacement based on your business experience.

Be sure to set up a simple system for budgeting. Use the KISS (Keep It Simple, Stupid) philosophy and keep it as easy to use as possible so that you aren’t discouraged from staying on top of it. The more complex the system, the less likely you are to be consistent with it. Small business budgeting is crucial, and requires consistency and accountability. Chances are you will be consistent if it’s something you can do in a couple of hours per month, as opposed to a couple of days per month!

Don’t “set and forget” your budget. Budgets need to be monitored frequently in order to remain effective. Income and expenses you estimated last quarter may be updated with more accurate numbers. Maybe you can eliminate some advertising costs if a particular campaign is not bringing you the desired results. Your budget is not set in stone so don’t be afraid to make adjustments as necessary, keeping in mind what your business goals are.

Make marketing expenses a priority in your budget. Marketing often determines the success or failure of your business and should not be given the “scraps” at the end of the budget, or taken from the gross profits. Marketing expenses should be established and built into the budget as it is a vital part of increasing sales. Small business budgeting means getting the most bang for your buck these days when it comes to marketing so examine those expenses carefully and budget for them accordingly.

As you continue your small business budgeting, you will come to appreciate its importance. As a small business owner, it is very likely that you wear many hats so you can see the value in knowing and following your budget while making day-to-day decisions for your business, right?

Retrieved from “http://www.articlesbase.com/small-business-articles/small-business-budgeting-major-mistakes-to-avoid-business-suicide-1479573.html”

(ArticlesBase SC #1479573)

Liked this article? Click here to publish it on your website or blog, it’s free and easy!

Haruna Matsumoto -
About the Author:

/>And since small business budgeting is the first step to increasing your sales, you will want to see how we can help!

We are committed to helping small business owners grow in the fastest and most affordable way possible, by maximizing the resources they already have and putting them in a position to truly succeed, in spite of the economy.

For a QUICK and AFFORDABLE business BOOST, visit us at www.mytwitterbiz.info TODAY!

Questions and Answers

Ask our experts your Small Business related questions here…200 Characters left

Where can I take a class tolearn about buying a business? A franchise or small business…so I don’t make any errors when investing my lifetime savings?
I am buying a small business and my solicitor is insisting that i have an asbestos report but the vendors solicitors say it is not needed as the building is too small
Which Online Project management Software is good for small business entrepreneurs?

Rate this Article

1
2
3
4
5

vote(s)
0 vote(s)

Feedback
RSS
Print
Email
Re-Publish

Source: http://www.articlesbase.com/small-business-articles/small-business-budgeting-major-mistakes-to-avoid-business-suicide-1479573.html

Article Tags:
small business budgeting, budget for business, sales in a recession, recession proof your business, recession proof my business, business in recession, increase business sales, increase sales, help increase sales, cutting business costs, cutting business

Related Videos

Latest Small Business Articles
More from Haruna Matsumoto

Small Business Stories – Budget Blinds

Meet Aspiring Entreprenuers and listen to their small business success story. In this episode: learn more about Budget Blinds. (05:45)

How to Keep Marketing in the Budget

Learn how to include and save a portion of your business budget for marketing costs. (00:53)

Learn about Online Advertising with Google Adwords

Learn about Online Advertising with Google Adwords, a Great Solution for businesses on the budget (01:55)

How to Cut The Cost Of Running Your Business In The Recession

Learn how to determine what to consider when cutting costs in your business. Howard Lewinter, Business Management Specialist, discusses business strategies to help CEOs, company presidents and business owners survive and prosper in the recession (and be ready for the eventual business upturn). (04:50)

Debt Reduction Tips – Budget Part 3

Learn how to reduce or eliminate you debt with this instructional video – What is the best way to keep a budget? (01:21)

Recession Proof Your Business â Itâs Easier Than You Think!

When most of us hear the words ârecession proof your businessâ we automatically assume it can be done but at a big cost to us…meaning lots of time, money, or both! To be honest, it will require some time and possible a small portion of your existing marketing budget but it will pay off in a major way!

By:
Haruna Matsumotol

Business>
Small Businessl
Nov 19, 2009

Smart Businesses advertise even during Recession, says Stellar Concepts and Design

Advertising and marketing should be taken as an investment and not as an expense; and when the economy is down, advertising becomes still more important. Cutting your advertising budget simply means increasing your competitorâs share of voice.

By:
Anthony Giudicel

Advertising>
Online Promotionl
Jun 16, 2009

Sales in a Recession: Can They Be Increased? 4 Vital Tips!

So we’re in a recession…does that mean your business has to suffer, too?! Absolutely not! There are many things a small business can do to boost their sales to not only survive, but also thrive. If you think having a website and phone book ad are enough, think again!

By:
Haruna Matsumotol

Business>
Salesl
Nov 19, 2009

Increase Business Sales â The Lifesaver for a Drowning Business

If your business is struggling to stay afloat, itâs not alone. There is hope, however. Many businesses are finding creative ways to cut down on expenses and increase business sales. Here are some great tips to help you:

By:
Haruna Matsumotol

Business>
Small Businessl
Nov 19, 2009

Why the Recession is the Best Time to Start a Business

It seems absurd doesnât it, but a financial downturn honestly can be a good time to begin a new business. But not all businesses are suitable. All bone-fide commercial ventures involve investment so during economic turbulence itâs wise to act with caution not only with regard what you might invest in but also what amount of your hard come by money you are prepared to put into a new enterprise.
Ideally we want a solid business that can be obtained for an affordable investment, though itâs best

By:
Elizabeth Mirandal

Business>
Leadershipl
Jan 20, 2009
lViews: 268

Rodman and Rodman, P.c. Shares Recession Proof Tips for Small Business

DATELINE: NEWTON, MASS…

Larry Rice, CPA and Director of Strategic Consulting at Rodman & Rodman, P.C., Certified Public Accountants and Business Strategists, offers small business owners tips on how to weather a recession.

By:
Steve Dubinl

Finance>
Accountingl
May 27, 2008

Design Your Bathroom Using a Six Step Process

Step 1 – The Study of Space:
Space – How much can I have? The next step is to find out more about the space that is available for this new bathroom. Is it restricted to the existing bathroom footprint? Can you remove the linen closet and use that space in a different way? Do you really use the whirlpool tub? Can you use an adjacent closet, a coat closet or part of the adjacent bedroom? Empty nesters ma

By:
amspoker mccammackl

Internet>
Internet Marketingl
Dec 16, 2010

How to Succeed in Penny Stocks Trading

Have anyone of you tried investing in the stock market? Stock market may look like a very promising place to be especially if you want to earn big bucks but it could also be very intimidating particularly to a beginner like you. Fortunately, for new comers in this game there are some ways of being successful without taking a lot of risk by means of training yourselves first in some virtual stock market game, in which you would the ins and outs of this game.

By:
Thomas Glickmanl