top of page
  • Writer's pictureJordan Silverman

Budgeting Essentials: How Small Businesses Can Plan Better

Budgeting is vital for small businesses. A well-planned budget allows you to control costs and make informed decisions. Here's a guide to help you plan better and increase profits.

1. Understand Your Costs:

  • Fixed Costs: Rent, salaries, insurance

  • Variable Costs: Raw materials, utilities, advertising - this can vary dramatically week over week so looking at it by period is best practice

  • Unexpected Costs: Always set aside funds for unforeseen expenses. Anything from large repairs to weather can throw unexpected wrenches in your profitability and planning

2. Set Realistic Goals:

  • Short-Term Goals: Weekly or monthly targets

  • Long-Term Goals: Quarterly or yearly targets

  • Align Goals: Ensure your goals align with your business strategy

3. Create a Budget:

  • Revenue Estimates: Calculate potential earnings

  • Expense Tracking: Monitor what you spend - start with your accounting system P&L

  • Profit Calculation: Subtract expenses from revenue

4. Monitor and Adjust:

  • Regular Review: Check your budget frequently and see how it compares to what you ACTUALLY spent - running this variance is critical for future improvements

  • Adjust as Needed: Make changes to stay on track. Can't stress enough how important this is!

  • Use Tools: Consider tools like Starfish to better understand and lower costs

5. Save and Invest:

  • Build a Reserve: Save for emergencies

  • Invest in Growth: Reinvest profits to grow your business

Budgeting doesn't have to be complex. By understanding your costs, setting realistic goals, creating and monitoring a budget, and saving wisely, you can better plan and thrive in today's competitive marketplace.

For personalized insights and tools tailored to your business's specific needs, visit Starfish. We're here to help you increase your profit and make more actual money.

2 views0 comments

Recent Posts

See All

How to choose the right bookkeeper for your business

I am super excited about this blog post. Today we have an interview with Sheree Gibson who I have been lucky enough to work with for nearly 7 years. She is an EXPERT when it comes to running operation


bottom of page