Business Budget Basics: Things Your Business Should Be Spending Money On

Anita Ginsburg

July 20, 2015

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Whether you are just starting a business or looking to set off in a different direction, there are some basic budget items that should be always be included in the discussion. Keeping employees and the business safe is always a priority, and so is finding out what currently sells. Reaching the right customers and taking care of them is vital to profit margins. Regular expenses like the cost of doing business and paying employees are one of the first things that should go on the budget for any company.

Operations and labor (fixed and projected costs)

Basic daily costs are always the first thing put into the budget. These areas are not places to cut back because to operate you need good working equipment and skilled help. Taking care to keep a healthy budget aside for daily working costs and all employees is one of the best ways to start writing a basic budget for any business, new or existing.

Emergency and contingency plans

Businesses always need to keep a portion of their operating costs and budget set aside for emergencies. There also needs to be money set back for the implementation of contingency plans. Contingency plans are not the first choice because they usually cost more money or take more resources to implement, so budgeting money aside to put them in place is necessary for the times when they are needed.

Security

Keeping money aside to protect your property and the staff is one of the most important things every business should place in their basic budget. Keeping people safe at work is vital to employee morale and turnover rates. Using current theft deterrent technologies, workplace safety upgrades, and hiring a security monitoring company are all ways that a business can increase their safety. Most expert security companies offer a threat assessment estimate to help identify ways to increase safety.

Research

Staying current with market research is crucial in the fast-paced world of social media and instantaneous likes, tweets, and shares. Consumer desires change constantly, but savvy social media managers can keep track of momentary fads and key fashion trends that can make your business money. Surveys and questionnaires are a great way to get customer information, especially when participants are rewarded with purchasing discounts or free items.

Marketing

Understanding your niche in the market is the key to using your market budget wisely. Businesses that put money aside for new marketing techniques are often surprised at what works for them. Some demographics call for family-oriented ads and quality manufacturing while other neighborhoods with professional residents are more likely to prefer modern amenities, luxury furnishings, and new construction homes. Paying attention to the type of people that buy homes in the area can help a business decide how to focus their marketing budget for the best profit returns.

Customer service

Doing something for the customer is a good way to guarantee a loyal customer following. If you need to find a way to keep more customers, then consider adding a lounge area, free coffee and tea, quality bathroom décor and curbside service. You need to make sure you have vending machine parts and the right technology if things break. Your customers shouldn't suffer because of broken vending machines, restrooms, phones and more. You should also consider follow-up phone calls, reminder postcards, or something that your industry does not always do for the regular customer. Adding a gift with purchases over a certain amount is another option.

Every business must start with the same basic budget items to keep their employees, customers, property, and business safe, happy, and healthy. Adding money to customer service or employee rewards are great ways to boost morale and reduce turnover in both fields.