Budgeting simply defined is defining limits to your expenditures so as not to exceed net income. The smart businessman must always calculate what it would cost to operate his business. He must also find ways to spend money efficiently in order to maximize return.
I purchase designer watches and send it overseas. It is sold by a jeweler who reconditions the watches. The business name is Marikina Watch. Here are the steps I take to make sure that my business sticks to the budget or undercuts it.
I make sure to keep accurate records. Tracking cash flow is the most important thing in sticking with a budget. Even small expenses can add up to a lot and can marginally affect the bottom line. Accurate and timely information is essential for a successful business. I used categories to separate my expenses in a spread sheet. The categories highlight where money was specifically spent.
I carry a notebook to track all the small expenses that did not have accompanying receipts. I enter these miscellaneous expenses into the spreadsheet at a later time. This ensures that there are no "money leaks" in my budget. These are expenses like vending machines and parking meters.
Determining the monetary cost of an item and finding the absolute minimum you can pay without compromising quality or utility should be a constant activity. In this economy there are a lot of companies that offer significant discounts on items such as business cards, stationery and envelopes. Consumables like toners, paper, coffee and office supplies prices should be tracked. Discount stores are now in vogue and being caught in one carries no stigma. Purchasing supplies no frills style is now a sign of business savvy.
I shopped for the lowest prices for internet access, phone services, copier machines leases and other recurring monthly bills. Periodically I review special offers by the provider companies for these services. Frequently changing providers for these key services is of course an unbearable disruption. However information can be used for price negotiation. It is possible to get the same service for a lower price.
After expenses I track my monthly income. No budget works without giving equal attention to income and expenses. Track your income in as detailed a manner as you track your expenses. Determine net income as opposed to just knowing business revenue. This is done so adjustments to the budget can be made quickly as opposed to incurring debt.
These suggestions take effort to implement. Every successful businessman will however tell you that the effort is well worth it. The alternative is business closure and I cannot have that.
I purchase designer watches and send it overseas. It is sold by a jeweler who reconditions the watches. The business name is Marikina Watch. Here are the steps I take to make sure that my business sticks to the budget or undercuts it.
I make sure to keep accurate records. Tracking cash flow is the most important thing in sticking with a budget. Even small expenses can add up to a lot and can marginally affect the bottom line. Accurate and timely information is essential for a successful business. I used categories to separate my expenses in a spread sheet. The categories highlight where money was specifically spent.
I carry a notebook to track all the small expenses that did not have accompanying receipts. I enter these miscellaneous expenses into the spreadsheet at a later time. This ensures that there are no "money leaks" in my budget. These are expenses like vending machines and parking meters.
Determining the monetary cost of an item and finding the absolute minimum you can pay without compromising quality or utility should be a constant activity. In this economy there are a lot of companies that offer significant discounts on items such as business cards, stationery and envelopes. Consumables like toners, paper, coffee and office supplies prices should be tracked. Discount stores are now in vogue and being caught in one carries no stigma. Purchasing supplies no frills style is now a sign of business savvy.
I shopped for the lowest prices for internet access, phone services, copier machines leases and other recurring monthly bills. Periodically I review special offers by the provider companies for these services. Frequently changing providers for these key services is of course an unbearable disruption. However information can be used for price negotiation. It is possible to get the same service for a lower price.
After expenses I track my monthly income. No budget works without giving equal attention to income and expenses. Track your income in as detailed a manner as you track your expenses. Determine net income as opposed to just knowing business revenue. This is done so adjustments to the budget can be made quickly as opposed to incurring debt.
These suggestions take effort to implement. Every successful businessman will however tell you that the effort is well worth it. The alternative is business closure and I cannot have that.
