2021 has started, and we all are excited for the new year. With all the challenges faced in 2020 we are all looking for a quantum leap for 2021. January is almost over so we are left with 11 more months. So, Let’s make the most out of it.
To start, look at your financials and cash flow for 2020 and make a budget, more specifically, for the cash flow. Here are some tips to make your budget:
- Fix a goal in mind for your revenue. The goal should be SMART- Specific, Measurable, Attainable, Relevant, and Time-Bound. I have seen business owners setting up unrealistic goals and at the end the budget becomes meaningless. Your budget should be very realistic as well as sensible. I am not asking you to stop dreaming but keep the dreams to yourself and not in the budget.
- For budgeting your expenses, review your last year’s financials. Your current year budget should be based on your last year’s expenses. You should always keep a provision of what you want to spend additionally this year. In this case, be as stingy as possible, try to keep your additional expenses to a minimum.
- Every month review your budget vs actual spend and make necessary changes.
- Last but not least change your budget every three months based on the performance of the previous quarter. Here you can put your dream target, provided you have reasonably achieved previous years target.
Need help with budgeting please connect with me at email@example.com always happy to help.