#9 Working on a budget

Every business owner at some point struggles with money,  in fact statistics show that a business only enjoys profits after three to five years.  This simply means that for the first few years of your business you must be a master of coins.  You must learn the delicate balance between income and expenditure.
In this post I will provide five recommendations on how to keep an eye on your finances.

Bring out the paper and pencils because you will be here for a while:

1.     Tally your income for at least one month

                                                  i.     This will be in the form of predicted sales based on money available to purchase stock

 2.    Tally Fixed Expenses

                                                  i.     These are expenses that do not vary on a month basis for example rent, salaries, fixed utilities.  

3.  Tally Variable Expenses

                           i.    Items such as stock, transportation etc.  These are great to keep record of because they can be curbed when need be and it also reflects the productivity of your business.

4.     Predict one-time purchases

                                                  i.     In creating a budget, you can properly prepare to make large one time purchases such as new equipment. or emergencies.

4    5.     Bring both expenses and income together to create a cash flow for that month

                                 i.  Download a version of a cash flow here for your business.

5    Be sure to always keep your receipts from all transactions and speak with a professional when considering bank loans.

  Here's a short video to shed light on the topic:

This was just a very simple way of staying on top of your monthly finances please consult a professional for all long term financial planning.