DINEO TSAMELA: A budget gives your growing business a quantifiable direction
For small business owners, winging it — especially when you're starting out — may be a way for you to function in the first year or so. You're trying to grow you client base, you're making mistakes and learning. The idea of putting together a solid budget for your business amid the chaos may not be particularly appealing. But as time goes on, setting a clear and quantifiable direction for your business growth is important if you want to be successful. Budgeting, or forecasting, can be difficult if you have nothing to base your projections on. However, it's important to factor in the following in your budget: • Set your sales targets: You need to have a sales target that speaks to your operating costs. If you have past numbers, use them to derive a target for the future. A target for sales will guide the rest of your budget and help you work out how the other parts of the business fit under this single target. You can set a target for the year, then break it down monthly. A monthly v...
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