By: First Union
3 Budgeting Tips for Small Businesses for The Coming Year
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It's always exciting to plan for the new year…Then again, from an economic standpoint, it can also be frustrating. You're uncertain about the financial landscape, the political picture—there are a lot of variables yet to be deciphered. But you do still need to plan, especially in terms of your business's budget. Regardless of where you currently stand, it never hurts to make some smart budgeting moves in anticipation of 2020. Below are three such tips that you can start working on now.
Do You Have an Emergency Fund?
Every business needs to have an emergency fund in place; such a fund helps offset those unexpected costs that arise, so you're not left having to drain your profits. Anything from a natural disaster that leaves the company in limbo to an unusually slow sales season may require you tap into your emergency fund. You might need to cut some costs to start saving.
Apply For Affordable Financing
If you have thought about trying to take about a business loan, you may want to do that sooner as opposed to later. Especially, if there's a chance your financial picture could look a bit different in 2020, now is thus most definitely the time to apply—while things are still fairly solid and looking good. Many suggest that the best time to get a commercial loan is actually when you don't need one. Lenders for obvious reasons prefer lending to businesses who are on the upswing and growing stronger.
Keep the ROI in Mind
When your business invests, whatever the investment, you should always have the ROI in mind. If for example, you have decided to invest in a new marketing strategy—take some time first to figure out what exactly will get you maximum ROI. Is it putting money into your online presence? How many new customers will be getting in return.
It is always a good idea to have a budgeting plan just in case unfortunate events do come up. First Union Lending offers many business loan products that you can utilize. Find out what you qualify for !