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4 Business Budget Musts

Did you know that a good percentage of business owners comb over their budgets a million times before they go ahead and start their business? It’s a smart move, because let’s face it, a business is made up of so many elements it’s natural that someone could forget something within it. There is so much more to a budget for a business than gathering all the bills and working out where all the money needs to go each month. The problem is that if you base your budget only on the initial bill, there’s a lot that gets missed out.

When this happens, you could end up thinking that your budget isn’t working and that something is not right – well, yes, you’ve forgotten a few things so you’re going to be over your budget! Instead, you need to make sure you are accounting for everything when you are working out your expenses, and below, we’ve got four musts that you should add into your next budget sheet – just in case!

 

  • Eating Out

 

How often do you decide to do a team lunch? Monthly? Weekly? And how about how often to wine and dine clients for their business? Regardless of how often you indulge, you need to consider eating out as part of your business budget. You should be averaging how much you tend to spend on a meal with your team, and then multiplying that by say, four weeks in the month, and then if you don’t spend the whole amount, roll it over. The more rollovers you have through the year, the bigger the Christmas party!

 

  • Emergency Fund

 

As part of your main business budget, you need to have some money put to one side purely as a back up. What if your delivery driver has a breakdown and the car needs replacing entirely? Or you have a fire in the office and lose some equipment? There may well be insurance to cover most of the costs, but an emergency fund is just good business sense.

 

  • Recruitment

 

You may not believe that some people forget a recruitment budget, and it’s because 99% of the time, people include money for hiring new staff. But what if you wanted to use an agency like Pure Staff Ltd? Did you include the costs of the agency fees? That’s why you need to ensure that your recruitment budget is bigger than just salaries. You need to consider all of the outside fees: recruitment agencies, training, etc, that come with it.

 

  • Gifting

 

Corporate gifting is a big market, and you could really want to impress your clients by learning their birthdays. Budgeting for Christmas as well as birthdays makes sense for everyone, because then you have factored gifting into your main amount and you’re never left short.

A business budget isn’t something to guess. You need to do your research and figure out whether you will have enough for all the nitty gritty that goes into a business. If you do that, you can be ready for anything.