Hi again, Happy Eid Mubarak for all muslim brothers and sisters.
I am back again with a new and important business tip. All businesses start their business to attain success and grow their businesses to higher level. Some how scary report shows that out of 10 new businesses only 1 survive after 10 years. only 5 after 2 years.
AbangAbu had been doing some research work on this issue. After some time i realise that 1 common thing that the successful businesses that survives had was the success of budgeting in their business plan.
AbangAbu wants to share some ways that you can have a budget that will work for your business. So lets see what are those things:
Its called BUDGET
B= Be Prepared
Many of those who fail in budgeting are because the are not prepared.You have to understand that budget is done are based on guess what going to happen. And there will be chance that you are going to miss your estimates.
Instead of mad of why you misses the estimates , try to find what cause it to over your budget and what are the ways you can control for the next month. So it is not bad to miss your estimates , however you must learn intelligently on ways to improve the estimates on how you wanted it. So learn to be prepared that you might miss your estimates.
U= Use Spreadsheet
Learn to use spreadsheet. Using spreadsheet is an excellent way to make your budget works as it will give an idea how is your progress within that month.It will also gives you the reports on what have been over what been budgeted.
Using this reports will make it easier for you to plan on what to take as the next step on improving the result. Take some classes to use spreadsheet will be a good investment for you and your business.
D= Do Checks
Check on your suppliers and service providers on the value you are getting from them. Also do check and find new suppliers that might be giving you a better value that can improve your revenue and bottom line.
You must always have more than 1 supplier so that you will have options and also better bargaining from them.
G= Get information
Constantly update of what is happening in your industry that you are in. This is very important when you are starting to do a budget plan for your business. This reports you can find from the business institutions and government bodies.
This is a great way to find out how your business will fare in coming years and what are the opportunities your industry has in order for you to bring in revenues? What are the future like for your business?
This is a very important to update yourself by joining any networks that will provide you with the latest information.
E= Eliminate Unwanted expenses
Look out to cut cost of certain avenue in your business. Keep your next purchases till the last day and make use of the credit term that been given to you.
Keep asking for better deals from your suppliers so that you can be always below your budget. Ask for discounts and special cut on advance payments. When your budget is tied this tips will be a helpful way to make your budget work.
T=Track and Review Business Progress
Many business fail because the would have a budget drafted in the begining of the year and will let it out till the next budget year without even knowing how they have done.
It is a best practise to keep track of the budget on a monthly basis, This is becauseof the volatile climates of businesses. Keep track and review you budget plan as you might need to adjust to stay within your budget.
Budgeting is an easy but very important process in a success of a business, The goal of budget in business to make sure that everything is as what we wanted and also to maximise of the profit for the business.
