Starting your own business can be exciting and grants you countless opportunities for success. However, there are also inherent risks that come along with a new business venture. One of these risks is improper budgeting. If business finances aren't managed well, startups may find themselves struggling to continue in the long run.
Since expenditures are expected to only increase as the business grows, business owners must quickly become adept at planning their budget wisely. To help you get started, get to know 3 practical budgeting tips to avoid facing cash problems.
1. Take note of the essentials
Knowing what’s necessary for the business to keep running and what isn’t is fundamental in budgeting business capital. To begin cutting down on unnecessary expenditures, start by identifying the essential expenses such as rent and bills.
Sometimes, there are expenditures that are crucial on specific periods and some that are more seasonal. You will need to figure out which ones will bring more value to your business during a given period, so you can significantly limit your expenditures and save on costs that could be used elsewhere.
If your business is just starting out, you can benefit from getting an affordable space for your operations. Our property at 18 New Industrial Rd offers ancillar offices and warehouses for rent
, with accessibility via KPE and CTE. Situated within city fringe, this 6-storey industrial building is also located near Tai Seng MRT station with a variety of F&B nearby. With a revamped layout and façade facelift, it also offers a professional corporate image on the exterior. Sizes of units range from 430 sqft to 678 sqft – with 3.8m ceiling height, aircon and lights. Other facilities include 24-hour CCTV & access, 20-footer access and 2 loading bays.
2. Prepare a cash cushion for emergencies
Most startups often start with limited capital, so they need to stick to their budgets and avoid financial mismanagement. However, unforeseen circumstances can always arise at any moment. And if a business is unprepared, this can possibly result in strained cash flows and disrupts its daily operations.
In anticipation of such situations, there are a couple of things that you can do. The first is to consider cheaper alternatives to your usual expenses. The costs saved from the switch can then be put into a cash reserve that can be used for rainy days. Secondly, incorporate the share for the reserves into the business budget itself so you have some cash to fall back on for emergencies.
3. Manage your time
Planning your business budget isn’t limited solely to finances; time is also a factor. As they say, time is money – and without proper time management, it can indirectly lead to increased costs in manpower and other resources.
To avoid unnecessary expenditures, review and take stock of the business’ day-to-day operations and discern which activities take up the most time for you and your employees. Once done, you can either brainstorm ideas on how to cut down the time spent on them or remove them entirely by outsourcing them to professional services.
One way to ensure efficiency in your operations is to get an optimal working space to support your business activities. Especially as an E-commerce retailer
, you can benefit from the right space to store goods, carry out order fulfillment and achieve customer satisfaction. Our property at 38 Ang Mo Kio Ind Park 2 offers warehouses for rent within 3 connected buildings with multiple storeys and a corporate frontage. Accessible via CTE, it is also conveniently located from the main road where several bus services are available as well as a feeder bus right at the entrance gate. Apart from the general B1 industrial capabilities and offerings, this property also serves in-house products including lockers, self-storage, event hall rental, and adhoc marketplace. Our subsidiary, Work+Store is also available here to offer storage and processing units that suit startups, small business and entrepreneurs looking for small business offices for rent
. Other amenities include season parking for heavy vehicles & cars, 3 cargo lifts, and 4 passenger lifts.