Working on a small budget – tops tips for SMEs

Almost every SME will start off life with a limited budget. However, it is what you do with that budget that is likely to define how successful you are in the early stages of operation.


If you would prefer to avoid making significant business restructuring changes down the line, setting certain features in place from an early stage could be vitally important. We have looked at a few potential tips that SMEs operating within a strictly defined budget may find very useful:


Make the most of your existing resources


If your business has been forced to rein in its spending, drawing on the expertise of existing staff to examine how the business can be driven forward, without a large outlay, is invaluable. This could be anything from increasing your company’s social media presence to assessing whether staff can take on additional functions within the company to reduce overheads. It’s hugely important to keep evolving as a business and questioning things like this is a part of that process.


Reassess your spending


Reassessing your spending in all facets of the business from advertising to accounting will enable you to identify if cutbacks can be made in any area, and if the funds can best be directed elsewhere. If you are a member of a small business organisation such as the Federation of Small Businesses (FSB), you may be able to receive a financial health check for your business.


Set a realistic budget


Outlining a realistic budget that includes a number of elements including fixed costs (such as staff wages and utilities), variable costs (such as wages and staff overtime) and non-operational costs (such as taxes) will help to ensure that your business makes the most of the capital it holds. What you manage to achieve with the funds you have will be the key to driving a successful company forward to greater things in time.


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