Entrepreneur Amir Landsman has achieved considerable success as a business owner in the financial-services field. His depth of knowledge and experience has allowed him to create working budgets for his fledgling businesses and to adjust these financial plans as needed throughout the fiscal year.
The U.S. Small Business Administration (SBA) offers some helpful suggestions for business owners and managers in establishing a comprehensive budget. By setting parameters and maintaining the flexibility to adjust limits as needed, business managers and owners can ensure that adequate funds are available.
Learn to Manage Change
Even healthy economies undergo their fair share of financial turmoil and fluctuation during the course of a typical year. Business owners and corporate leaders must be willing to accept change as part of the overall market environment and to embrace solutions that can be adjusted and retooled over time. By planning for potential changes in demand, supply arrangements and economic factors, small businesses can more effectively maintain their operations even during difficult times. The SBA recommends updating budget figures and forecasts once a month to ensure that all aspects of the financial plan remain on track and positioned for profitability.
Take a Look at Your Supply Chain
Supply-chain management is one of the hottest topics in the small-business world. Optimizing vendor selections and contractual arrangements can provide added funds for the corporate budget and can allow small-business owners to take advantage of opportunities when they arise. By taking steps to weed out underperforming suppliers and to reach mutually beneficial arrangements with reliable and affordable vendors, business owners can boost their success and overall profits.
Be Ready for Anything
Creating and maintaining an emergency fund can provide valuable peace of mind for small-business owners. These funds are valuable buffers against unexpected breakdowns, tax payments and other financial emergencies. Additionally, putting money aside each month can create a sizable nest egg that can be used to take advantage of limited-time offers or opportunities within the industry.
Go Back to School
Business owners can improve their businesses by researching new opportunities in the industry and creating budgets that take advantage of these emerging opportunities. By learning how to read the various economic indicators and taking time to examine the marketing, operational and financial plans of their major competitors, business owners can develop strategies to boost their own performance and profitability. Although this type of homework may not be on anyone’s list of most entertaining activities, it can pay off with increased sales and an improved market position both locally and throughout the company’s chosen industry. Designating a portion of budgetary funds to research and development can be a valuable investment in the company’s future.
Aspiring entrepreneurs can learn a great deal from the examples set by Amir Landsman and other successful business leaders. Taking the time and putting in the effort to create a working budget that includes emergency savings and research and development funding can create a solid foundation for future growth and prosperity.