So, you’ve done the impossible. You’ve secured working capital loans for small business or some other adequate sources of working capital finance. This is an amazing feeling for a new business owner. The new world of entrepreneurship that opens up to us makes it seem like it’s one big old oyster just opening up as access to much-needed resources begins to open up to us. Now is the time to take concrete steps but first we must stop and evaluate. What exactly are those next steps?
First things first – the first step is to create an actual budget. An actual budget is not an imaginary budget with million dollar projections but is instead an actual real world budget that utilizes the resources that are available at the time the budget is created. It is important to be reasonable and use the numbers from your actual sales and relevant market research to create a budget that can work for a small business. Enormous and imaginary budget projections are awesome for the law of attraction but will not serve anyone if they are not reigned in appropriately.
The next simple step is to ensure that there are real references meaning more research for the budget. As business owners, we should know exactly how much every single solitary item, service, or product that we use will cost our business. There should be no stone left unturned in this arena and there is no such thing as too many details when it comes to this aspect of planning for our companies. Keep it short but make sure that all of the T’s are crossed and I’s have been dotted in other words, details should not be overlooked in any sense.
The third basic step is to make sure that we are not overestimating our income and revenue. The lack of income that some businesses can face in the first months to a year of a business’ start is often the nail in the coffin for many start-up companies. A good rule of thumb when estimating income is that once it has been estimated, reduce it by at least a quarter but by as much as half depending on the specific circumstances.
Contact the professionals here at Financing Your Way today for more information!