Small Business Budgeting Tips

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Starting A Business On A Tight Budget

Poor money management is a top reason why most startups fail in the first two years. It’s important for small business owners to regularly monitor business finances. Sometimes the best way to study upward and downward trends is to transform profits and losses into a graph or visual display. While computer based creativity is appreciated in these endeavors, just being able to look at the numbers and plan for the future is most important.

Basics of any business budget

Every small business needs to set aside enough money to address monthly bills. While this is definitely difficult during any start-up period, it is of the utmost necessity. Entrepreneurs must be able to pay their own bills first, as it takes time to establish themselves and develop a steady clientele or customer base.


You need to be insured against a variety of unforeseen factors. These include fire, flood and theft. Should your business be located in a region frequented by possible natural disasters like earthquakes, hurricanes and tornadoes, additional insurance is advised.

A business that manufactures a particular item needs to take into consideration the products that they produce. Refrigerated food products and medical supplies need to be disposed of after a power outage. Electronics carry their own risks during the manufacturing process or while in storage. Skimping on insurance coverage or choosing a large deductible can entangle a small business owner into a greater chance of catastrophic loss.


Your company, factory or retail shop is likely to employ several employees. An owner asks that their employees be faithful to their place of employment and work to the best of their abilities on a daily basis. Just the same, employees thrive on the job knowing that their labors will be rewarded with a weekly or bi-monthly paycheck. For those employees who specialize in sales and marketing, commission checks usually make up part of their yearly income too.

Small business owners need to set aside cash reserves in the event that the business is having trouble making its payroll requirements. This assures employees that they have at least one future paycheck coming into their possession. With this information at hand, employees are a reason to stay on the job until additional financial arrangements can be made or they have other personal options to rely on.

Keeping costs down

There are things that all small business owners can do right now to lower the costs of operation. These include seeking a reduction in their commercial insurance policy by taking easy to implement precautions. Business owners can also lower the costs of their employee payroll without enforcing lay-offs or taking drastic measures.

If you are insuring a factory or manufacturing facility, making sure floor employees are thoroughly trained and properly certified is a definite plus. Adding an increased number of smoke detection units throughout the facility will impress any insurance adjustor. Another excellent idea is to require both workers and supervisors to wear fire resistant clothing while on the job.

Fire resistant clothing, like that manufactured by Ariat, is readily available online through companies like FROutlet. Businesses owners may wish to purchase everything from shirts to jeans for their workforce when appropriate. Offering incentives to employees encourages them to purchase fire resistant clothing on their own in the future for both on-the-job and personal use.

Keeping payroll costs down is something that many small business owners find much harder to do. To lessen the chance that lay-offs are necessary during the slow season, staff members need to be carefully hired. It is far better to pay employees overtime hours from time to time, than hire employees whose presence is unnecessary.

Should emergency staff members be required, temporary employment agencies are able to fill the void. These agencies only need a small amount of advanced notice to send temporary workers to your location. More often than not, these employees are well experienced in your particular field and will mesh seamlessly into the group.

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Samantha Acuna is a writer based in San Francisco, CA. Her work has been featured in The Huffington Post,, and Yahoo Small Business.