Starting a new company is a huge undertaking even in the most financially stable era. In the midst of the Coronavirus pandemic, it’s important to begin your business with financial responsibility at the forefront.
Knowing where your money is spent and allocating funds for monthly budgets allows you to focus on the big picture instead of worrying about the everyday minutia.
Whether you’re just beginning a new business venture, or need to tweak your current financial plan, here are some simple ways to manage your business spending!
Keep Track of Spending
There should be no surprises when you look at your accounts each month. Did you set aside funds for all those trips to the juice bar? Tedious as it may be, knowing exactly where each cent goes sets you on track for financial responsibility.
Take time to assess your company’s financial health. Make sure your budget works for you and is realistic, juice fund included. You may also find that recording budgets manually for a while is an easier way to keep track of expenses. If you’re inclined to opt for a digital alternative, try a scanning app to easily archive receipts without the clutter.
Cut Back on Unnecessary Spending
In addition to tracking your expenses, take a closer look to see if you can cut back on any monthly costs. There are often a few errant costs that could be eliminated without any trouble. Try to prioritize spending on essentials and think twice before making new purchases.
Here are a few areas to look at again:
Office Space – This is a tricky one in the current global climate. Due to the pandemic, many companies have switched to remote work and no longer need their office spaces. Reassess whether your office space is beneficial to your work environment, and ask yourself if it would be worth it to save on rent.
Traveling – Although traveling is unrealistic right now due to restrictions, it can be an important part of running a business. That said, traveling can also be expensive and unnecessary especially with sophisticated video call technology. Amend your travel budget to reflect your real needs in the future.
Personnel – Assess your ability to pay employees before you hire them! Don’t add new people to your team without evaluating the financial impact in the long term.
Have Emergency Savings
Make sure you set aside some money “just in case.” You never know when a pipe will burst and flood your office or when one of your biggest clients will go bankrupt. Life is messy and full of unexpected challenges and setbacks.
When you approach your finances with foresight and set aside some savings, you can rest easy knowing you’re prepared should a mishap occur.
Hire a Professional
You don’t have to do it all on your own. Working with a professional financial advisor can help you prioritize smart spending and evaluate your current finances.
Investing – Gain insight into smart investment choices for your financial goals. Working with an advisor provides you access to investment information and resources.
Goals – Outline your financial goals so your company can grow in the direction you want. Speaking with an advisor can help you prioritize the aspects of your company that are the most important to you and your team.
In addition to an advisor, consider implementing financial planning software for increased productivity and less time spent on budgeting.
An advisor can certainly help you realize your business goals, but being aware of your own aspirations is vital. Calculate if your monthly spending habits benefit or hinder your ideal business model.
Are you on the right track to create the type of work environment and client service you envision?
Have fun daydreaming about your ambitions. Invest in a whiteboard and brainstorm with your team about company goals and how to achieve them financially.
It takes a ton of time and cares to create a thriving business with a comprehensive budget. Once you’ve adopted new spending habits into your routine, it may take a while to witness the benefits. But don’t let this discourage you! With responsible monthly spending, you’re setting your business up for success.