No doubt business owners and managers have been thinking about their business budgets in 2020 and how they can better streamline their operations to cut costs in the New Year.
Planning for the New Year is usually a daunting task with future uncertainties but 2020 looks to be a great year for business. The economy is booming and there has never been a better or easier time to strengthen your business budget.
Here are 4 top tips for business budgeting in 2020.
- Affordable Financing
If you are thinking about applying for business loans, a line of credit or any other business financing option it is best to get it organized sooner rather than later. If your business is in good shape financially then this is the best time to apply for finance. If your cash flow is strong and there are no pressing issues with your accounts, banks are far more inclined to give you what you need to support the growth of your business.
This means you will receive better and more affordable interest rates, flexible financing options and much better terms that are likely to provide dividends further down the line. Borrow when you are strong, not when you’re in trouble.
- Review Fixed Costs
Businesses are full of fixed costs that drain the monthly budget. It’s best to review all your monthly outgoings and liabilities which you can amend, switch or even cancel if not required anymore.
These fixed costs usually come in the form of monthly software subscriptions, email marketing fees, web hosting or marketing costs. All can be reviewed to help cut costs. A common expensive cost is a commercial fleet. Are you buying company cars or leasing them? Buying them can cost you a small fortune and the vehicles will only depreciate in value. Consider renting your commercial fleet from Flex Fleet so that you can avoid losing money on any vehicles.
There are always ways of reducing and removing expensive fixed costs, you just need to spend some time figuring out what they are and researching the alternatives.
- Think ROI Every Time
In everything you do next year, make sure you consider the ROI so that you can grow your company stronger. Always consider the return you will get in every decision you make. You want to make decisions that will continue to add value to your business and make you money in the background.
If you are planning a new marketing campaign for 2020, ask yourself what you will get in return? How much website traffic could you achieve? How many new customers will that produce? How many new sales will it result in? Will it improve your brand image? Will it grow your customer base?
You can apply the ROI metric to most of the decisions you make for your business.
- Build a Nest Egg
With every new year comes new challenges. This could be unprecedented issues with the economy, losing clients, losing important staff, cybersecurity attacks and even natural disasters. All of these problems cost your business money. If this is not budgeted for it could be detrimental to your business.
One idea is start putting away money into a nest egg behind the scenes. Putting small amounts of funds away each month builds into a big nest egg after a short time and will help you face any unpredictable and unfortunate events in the future. Don’t get caught out!