How do you do a monthly budget for your business?

Managing your debt is a top priority when it comes to controlling your monthly expenses. Taking on debt is sometimes necessary as a company expands or when business slows due to economic volatility. Managing your obligations carefully can minimize the cost of carrying debt and make it easier to move back into the black when the market improves.

Review your current operations, looking for ways to cut unnecessary cost and increase revenues. After you have explored all options for increasing revenue and reducing expenditures, revise your business plan to reflect your current needs.

As a business owner that specializes in working as an advisor, in a consulting capacity, as a creative marketing person in the realm of advertising I follow a plan every month that covers the basics. After the basics are covered, and some months that can be a reach, then we go onto the more interesting level that of an ascertaining level. At this second level we look for opportunities that will increase the next month's cashflow or the cashflow in the months and years to come.

It is important to take a long term approach in the game of business. However on the short term you must be sure that all your basics are covered first. This of course is all common sense, "which today is often not so common" as they have said; you know those people the bull market folk.  They are often right however being in business you are forced to be very practical at times.  What I do is make everyone look their best, sometimes I must adjust, look at ways to upgrade, however when this happens I look at the money I spend as an investment. The one person told me what he believe in and that was people. We are all people whether we are consumers or business owners and we all consume at some level. This is why budgeting is required at all levels whether you earn 1500 dollars a month or 15 Million. It is all proportionate to the level we consume and invest.

Budgeting for marketing, can be tricky depending on the type of business you have i.e. accounting is heavy at the beginning of the year/tax season or heavy in the warmer months say for a surf shop; it all depends.  Rule of thumb ( for whatever that means) allocate 5% of gross sales for marketing.  Then divvy it up over the course of the year, so pre-pitch your seasonality at least a month in advance of seasonality to "seed" the thought of your business as the one to select.  Overall it is better to go with big shotgun blasts that have lasting impact then to try to stretch your marketing budget over the entire year.  The only that can do that is Anheier-Bush.

Keeping very low employee turnover will help with the monthly budget if you are able to put
together an All Star Team you don't have to worry about how the jobs are going to be able to start and be completed on time all other fixed expenses are directly related to employee
turnover, so keep your All Star Team and all will fall into place.
Cheers
Jay

Budgeting is not a Disney fantasy! Cash IN and Cash OUT. What are the 'Primary Cash INS'? What are the 'Primary Cash OUTS'? Can you 'Slide' on any of these 'Primaries or Secondaries'? But NOW you have to 'Forecast' and factor contingencies. How much fat is there on the lamb? Usually less than one would like. You must not uncontrollably lose ground and fall behind the 'Cash Flow Curve'. In aviation that is known as the 'Death Spiral'. Don't fall back on your credit cards to protect your needs, except as a 'LAST RESORT'. The interest is penal! How does one forecast? 3/6/9/12 months ahead! Remember, your 'Accounts Payable' may be 30 days . What does one do if the 'Accounts Receiveable' are 120 days? Put into hard perspective, you will be exposed to the cost of financing both your 'Receiveables' and your 'Payables'. Generate Income and new customers every day! Job #1!  Most businesses are not about manufacture or production. They are about Marketing and Sales! Do not get behind the balanced Cash-Flow Curve! You, the businessman or businesswoman, know what that is! Too much month left after the money is depleted! No fat on the lamb!

I am a simple guy with no education. I can't make it complicated. I get up every morning, enjoy what I do, do all I can do, keep it lean, no frills, no fancy vehicles, a good one that is dependable is all I need, no big or unnecessary loans, no credit card debt, ALWAYS Pay the CC IN FULL EVERY MONTH EVERY TIME, don't overpay myself, don't spend a lot of time and money on vacations or entertainment, pay the bills within 48 hours of receipt and always on time. NEVER spend money to impress someone. Seems to work. I have work everyday, I have bills paid, and I have a happy life. 

As an artist I have lived my life close to the bone.  But budgeting?  Well, for me the answer has always been to work from home and eat rice!  The bills have to be paid, so seriously, keep the overhead low.  Don't over heat in the winter (wear sweaters) and definitely don't overdo air-conditioning, even if you do have an office or shop away from home.  I think a ton of money goes literally out the window in the summer the way some establishments over-refrigerate their customers...and it's so unpleasant!  If you notice your female employees wearing sweaters in the summer, take the hint!   Yes, these are small things, but they can add up.

Having a restaurant that's seasonal doesn't make budgeting easy. The weather plays a big role. If it's cold or rainy people don't want to come out. Sometimes if it's too hot the same result. We do stick to a budget with food and restaurant supplies most of the time. Payroll sometimes can get tricky because of the flow of business. But my managers will send staff home if it looks like a slow day and/or night. We all keep our fingers crossed for warm, sunny days that aren't too hot! The perfect days make us all happy and the views don't hurt either!

There are some fixed expenses very month which cannot change like rent, payroll, electricity, taxes etc and other some unseen expenses happen every month. Since profit fluctuate every month some time you have to pay from your pocket if you don’t have enough savings from previous month. If you own business today we have to keep it tight on expenses in order to survive  since everyday business is not a guaranteed today.

Make sure to cover the essential bills first, starting with utilities, property and equipment loans.  Once those have been paid then start paying any overages on higher interest items. Pay cash before borrowing as often as possible. In addition, it may be worth looking at your incoming money.  With the ability to bill via e-mail and automatic payments, make sure that you are requiring those that owe you money to pay it within 15 days so that there is always a cash flow which is vital to growing!