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Budgeting Basics: 3 Things Many Business Owners Overlook

Most business owners will spend time planning their next budget in the months leading up to April. That is because they’ll know how much profit they made last year after paying their tax bill. However, lots of young entrepreneurs overlook important costs and get things wrong. With that in mind, I wanted to release an article today that points you in the right direction. While I don’t know all the ins and outs of your operation, I do know about some issues you might forget. So, take a moment to read through this post and see if my tips can assist you in getting things right this year. 

IT support costs 

Unless you employ a team of IT professionals, you will have to outsource when it comes to computer support. You might think your system runs well now, and that’s good. However, there is no way to predict when you might run into trouble. For instance, maybe a bug halts your ordering process and stops you from making a profit? Perhaps you fall victim to a virus attack? Either way, you must understand the benefits of IT support and the costs involved. If you don’t, you might discover you don’t have enough cash in your accounts to resolve any issues. That could have drastic consequences for your operation. 
Growth costs

At some point, you will want to grow your business and expand into new marketplaces. That could happen at any time as it often depends on factors beyond your control. So, it’s vital that you always have a stash of cash in your accounts. You never know when you’ll want to trade in a new territory or employ extra staff. Of course, you should create a growth plan right now if you’re thinking about making that move this year. However, you might also decide later on that you want to push your company forwards. So long as you have enough money lying around, you can do whatever you like. 

Product or service launch costs

Maybe someone contacts your firm with a new product that suits your range. You might decide at the last minute that you want to place a bulk order and add the item to your catalogue. That move will require investment for a couple of reasons. Firstly, you’ll need to insert the new design to your website and promotional materials. Secondly, you might have to spend a few thousand pounds when it comes to marketing the item. Adding products to your range is all well and good. However, you aren’t going to sell many of them if you don’t spend cash advertising them to your customers. 

If you manage to hold some money back in your budget for those three tasks, you should be on the right track. At the end of the day, you should always try to keep as much profit in your accounts as possible. That gives you more freedom, but it also means you can make more decisions based on current information. The last thing you want is to miss out on the next big product because you didn’t have the funds to start selling it properly.

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