Revisiting Your Small Business Budget
We’re all in this together. Nearly every small business in America has been affected by the COVID-19 outbreak, and we’re all working to recover, rebuild, and reimagine the future. An important part of that process is likely to involve revamping your budget—not just to tighten your belt, but to account for new spending.
Create a realistic budget
To recover from the pandemic, you may need to spend money to make money. For instance, you might need to rehire employees you laid off or hire and train new employees for roles that have changed or emerged as a result of COVID-19. You also might need to invest in new inventory and increase your advertising and marketing expenditures.
Identifying these and other areas where it makes sense to spend money over the next six months or so will help you understand how much money needs to be in your small business budget. That, in turn, can help you determine which cuts you need to make to balance the budget, including, if necessary, pay cuts for yourself and your employees.
Right now, it’s generally a good idea to trim your operating budget as much as possible, not only to survive the many unknowns of the coming months but also to be ready to take advantage of any opportunities that emerge for growth.
Follow a timeline
With so much change happening all at once, it’s easy to get overwhelmed right now, both personally and professionally. On the business front, it can help to create a timeline of steps that you need to follow to recover from the pandemic. That will help keep you on task instead of feeling overwhelmed.
For example, in revamping your budget you might find that you absolutely must secure new sources of funding—that could be the first task on your timeline. Then you may need to rehire key employees, then purchase inventory, and then start focusing on growth. A timeline will help you go through those priorities in order, instead of trying to do them all at once.
Get the support you need
As you take these and other steps to recovery, it might make sense to reach out for assistance from an outsourcing provider who can take some time-consuming tasks—like accounting and hiring new employees—off your list, so you can stay focused on getting your doors open and reaching customers.
Insero & Co. is a public accounting firm with decades of experience working with businesses and nonprofits of all sizes. Our experts are available to provide consulting and other remote services, including recruiting—whatever you need to help you get through these difficult times.
Share
About the Author: Kimberly Gangi
