How to Create a Business Budget That Works for Your Small Business

A solid business budget is the backbone of financial success. Without one, it’s easy to lose track of spending, undershoot revenue goals, or overlook growth opportunities. This post will guide you through the steps to create a practical, actionable budget tailored to your business’s needs.

Key Steps:

1. Assess Your Financial Situation:

   • Gather income statements, expense reports, and balance sheets.

   • Understand your current cash flow and financial standing.

2. Identify Fixed and Variable Expenses:

   • Fixed: Rent, salaries, software subscriptions.

   • Variable: Marketing costs, supplies, or seasonal expenses.

3. Set Revenue Goals:

   • Review past performance to forecast realistic revenue for 2025.

   • Factor in growth plans or external economic conditions.

4. Allocate Funds Strategically:

   • Use the 50/30/20 rule: 50% for fixed costs, 30% for variable expenses, 20% for savings or reinvestment.

5. Monitor and Adjust:

   • Schedule monthly reviews to compare actuals versus budgeted amounts.

   • Make adjustments based on performance and unforeseen expenses.

Creating a budget isn’t a one-time task—it’s an ongoing process. With a solid budget in place, you’ll be better prepared to navigate challenges and seize opportunities in 2025.

"Need help setting up your business budget? Contact BlueRock CFO for expert guidance tailored to your business goals."