Budgeting is a critically important part of the business planning process. If you’re a business owner and have a management team at your disposal, you will need to be able to predict whether your business will make a profit or not. This approach is basically able to provide a model of how the business might perform, financially speaking, if certain strategies, events and plans are undertaken.
With the end of the financial year looming, this will be one thought that will be firmly on your mind as a business owner – or at least it should be heading into a potentially big financial year for your company!
With this in mind, the process of planning needs to be thought about relatively quickly, as you can bet your bottom dollar your competitors will leap in front of you if you fail to activate these plans early. However, budgeting is not an activity that is completed in a few hours. A good budget may be worked on for a period of time that require adding and changing figures as new information comes to light.
Establishing a solid financial base for your new business is essential. You need to be clear about how much money you are going to need and where to find it. You also need to make sure you’re not ferociously battling against competitors within your industry throughout the year, you need to work out how much financing you require and when you will need it. While a bit of healthy competition is good for any business improvements, you don’t want them having/using a great idea before you’ve even got the top off your pen lid to note it down yourself.
In creating a budget for the year, your first step is to have a look at last year’s financial statements and budget (if they exist). Unless there is a change in the number of people employed, or the location and type of business, the overheads of the business for last year will be a good indicator of next year’s overheads. If your organisation has been in operation at least one year, there should be plenty of historical financial data to help you predict next year’s income and expenditure.
Most importantly of all, don’t wait until your need for extra funds becomes urgent. This is the time where you need to assess which funding you may need and what is suitable for you and your business.
Here at Aurora Capital, we are funding consultants, assisting UK businesses raise the necessary capital they require to facilitate future plans in the company. We have access to 15+ different lenders in a range of different lending markets, enabling us to source the most competitive solutions for your business. Not only will we strive to source the most competitive offers, but we can advise you on the best product for your business moving forward.
So, make sure you activate your business budgets in good time and reap the benefits!
If you would like to contact us further about activating your business plans or have any questions for our team, please give Aurora Capital a call on 01371 870 815. Alternatively, you can email us via firstname.lastname@example.org.