Budgeting

Are you trying to open your own small business or maybe you already own a small business? Have you ever wondered why so many small businesses fail? Is it because they do not have a market for their product or is it because they do not work hard enough?

No. Most small businesses fail because they do not budget correctly. Small business budgeting is incredibly important and you need to know the correct way to budget. Here are my top 3 small business budgeting secrets for you to use to be successful with your small business.

Small business budgeting secret #1 - Over budget

When you first write your business plan to get funding you need to over budget. Always plan your small business budgeting to include the highest prices you can find for the specific area of your business.

You need to plan for the most expensive and then buy something that is adequate to your business needs. This will ensure that you get enough funds to support your business. It is better to have too much at the beginning than not enough.

Small business budgeting secret #2 - Do not over spend

Over spending kills small businesses and you need to make sure that you do not over spend. When you have extra money that you were not expecting to have, save it rather than spending it. This will ensure that you always have extra cash in emergency situations.

This extra money can come from a big month in sales or your over budgeting. It does not matter where it comes from, if it is unexpected money, save it. You will be glad you did when you have a bad month or find that there is a new expense that you did not plan for.

Small business budgeting secret #3 - Take luck as luck

When you have a huge month in sales, like a retail store does in December, count this as luck, and nothing more. If you land a huge sale, count this as luck and nothing else. You are not going to have your best month every month. So when it happens chalk it up as luck, and move onto the next month.

This will ensure that you do not plan on having that huge month every month. That way if it happens again you will have extra money because your small business budgeting did not include it in the plan. It is better to keep having huge, unexpected months, than to have one and never make it back that, but have planned for the huge month every month.

There are 3 top small business budgeting secrets for you to use when you are writing your business plan or planning your new budget. It is important that you budget correctly or you will never give yourself and your business the chance to be successful.