The approaching end of 2017, and the beginning of 2018 is a great opportunity for business owners to look back and reflect upon the year and the one the lies ahead with the help of a budget. Your budget is the road-map that will steer a business towards the goals you set out to achieve. Without a realistic budget, 2018 will likely not see you any closer to accomplishing business success.
Good planning is vital to a business’ success and, whether you are just starting out, or you’ve been established for a few years, taking control of managing and planning your finances means you’ll have far more control over your business’s performance and growth.
To ensure your business has all fiscal bases covered, here are a few ideas to consider that will help you prepare for a balanced budget in the months to come. (via Procurify)
- Invest in technology
Although investing in software and upgrades can become expensive, if implemented properly, it won’t be long before the return on investment is reached. The FlexiFundIt Premium Funding Software is a unique, intelligent could-based software program that incorporates all the systems, procedures and documentation you need to run your own premium funding company.
Our advanced software solution is designed to manage and automate key activities in your business such as:
- Financial Agreements
- Calculation of Funding Requirements
- Daily Accounting & Administrative Tasks
- Supplying Quotes
- Creating Loans
- Creditor & Debtor Management
- List & reconsider expenses
How much do you plan on spending this year on your equipment, supplies, wages, etc.? Did you notice that you consistently ordered items last year that didn’t get used? Now’s the time to stop doing so to free up that funding towards supplies and inventory that will actually benefit the company. If you are looking for a higher profit, be prepared to cut back on your expenses.
If you also don’t have a complete understanding of what your costs are for new equipment, personnel or projects that vary in scope, it’s typically best to overestimate your expenses. Otherwise, you may not allocate sufficient funds to cover these expenses, which could cause you to take on debt at high interest rates because the need was unexpected, and therefore, last minute.
Now is a good time to evaluate a company’s equipment needs and to determine whether any capital investments need to be made. Identifying the business’s equipment needs early on in the year can help you reach your annual numbers and plan for future cash needs.
- Check out competitive vendors & suppliers
It should go without saying that every business owner should periodically review vendors and suppliers to make certain that they are giving competitive prices and delivering quality services. In many cases, suppliers may have just completed their budgets for the current year and are looking to pin down business to cut deals to ensure that they achieve their annual financial objectives.
If you find a better option out there, consider how switching suppliers might improve your bottom line.
- Revisit your business plan & company goals
If it has been a while since you examined your business plan, now is the time to review it to ensure it’s aligned with your current company goals and make changes where necessary. Re-examining the objectives of your company is a great way to prioritise which areas need more attention.
What can you do today to ensure your 2018 budgeting process is much more refined and more effective than the previous year?
A look back can:
- Tell you if you over-estimated sales
- Inform you if you’ve underestimated expenditure
- Help you re-focus on key segments of your enterprise
- Show you where your strengths and weaknesses lie in terms of estimating, cost control or monitoring and tracking
- Refresh your employees’ skills
If you have staff, now is a fantastic time to offer supplementary training to refresh their skills or provide them with new ones. Perhaps they’re not all using your customer relationship management software to its full potential or have got into some bad habits. Now is the perfect time to refresh all employees’ skills.
It’s also a great time to recognise any deficiencies early on in the fiscal year so that appropriate adjustments can be made. Keep in mind that finding, hiring and training the “right person” can take a lot of time, so it’s a good idea to get the ball rolling as soon as possible. Furthermore, it’s important to realise that many workers tend to ponder their own futures at the end of a year. They start thinking about whether they intend on sticking with the company or moving on.
- Re-look at your insurance
Sometimes the best offence is a good defence, and insurance coverage is a business necessity. At the beginning of the year, new rates for business insurance, motor insurance and other insurances tend to come into effect and it’s a great time to shop around for a new competitive quote.
Start the New Year off on the right financial foot by evaluating and adjusting your business budget accordingly. With a well-rounded budget for your business, you will be well armed to adjust your business to the ups and downs that 2018 may bring. Take the time now to consider how you can budget for a better year so you can take full advantage of any opportunities that the New Year has to offer your business.
At FlexiFundIt, we understand that budgeting may not always be easy. However, once you get the hang of it you will be able to plan your finances ahead without the stress. To learn more about how we’re able to assist you, contact our team today: