Store Your Budget – In Plain Sight!

Once you are done putting your budget together, save it where it can be easily accessed. Since this document will help you navigate your business daily, have it within easy reach. You will continuously refer to your budget to remind you of your goals and objectives to endure you are keeping up with expectations and when it is time to adjust the path you are one. Your budget, marketing plan and business plan should all be in one place. They are the lighthouse of your business and should be given priority – they should not be treated as “static” documents, but as the heartbeat of your business.

Accounting Software Can Help You – Get One!

It is great to have a software to help you keep track of all your revenues and expenses, keep track of your cash inflows and outflows and collect data to help you properly analyze your business and make informed decisions. The age old “gut feeling” does not work if you are serious about your business, there are many affordable software available, some easier to use than others, and even free ones. There are many different reasons to getting an accounting software especially if you have intentions to grow your business. When researching for an accounting software, be sure to compare different ones for functionalities, ease of use, can grow and your business grow, can help your accountant verify your information quickly and easily just in case you need financing from a bank (they need certified financial statements).

Ensure You Are Able To Break-Even – Sales Can Cover ALL Expenses!

What does it mean to break-even? It simply means you are selling enough products or services to cover the expenses incurred to provide them. You should not forget fixed cost – cost you will incur whether you sell any goods or provide any services. In a previous blog post “Know Where Your Revenues Are Coming From” we discussed some questions you should ask yourself to know where your revenues are coming from. To take it a step further, who are your customers, what drives your revenues? In the case of a restaurant, what is your average check per customer? How many customers spending an average of will it take for your business to break-even? Are you pricing your products and services according to your target market? Or your competitor? Or just because you feel like the “price is right”?

The same questions go for your expenses or total cost to run your business – are you being economical, efficient, and effective. Economical by buying the right products at the cheapest price (without compromising on quality for your customers)? Efficient by using these products with little or no waste? Effective by getting the results you set out to get from your products?

We will take a deeper dive into pricing and who all this ties into making sure you are running a profitable business and getting the results your set out to get within your business plan.

MOMENT OF TRUTH: What are your short term and long-term business strategies?