Your budget and your business
Updated: Mar 31
A key idea in business is keeping track of your spending in order to what your business is spending. This is the first step to budgeting. Your business spends the capital it has according to what customers want. This is all determined by the overall market trend, which is set by whatever is taking place outside of the market, i.e. on main street. Let's look at this closer.
A businessman owns a cleaning business, and there is an epidemic taking place that's been on the news a lot recently. He knows this because he watches the news, and his business has been allocating a lot of their spending toward disinfectants and other cleaning supplies used to kill bacteria and viruses. What does this tell him, he has to prioritize his spending during this time toward cleaning supplies to help his customers and bolster his business.
So, next time you're looking at the spending you've been doing, examine the overall trend with your accountant, what is the niche product that your business has that is being consumed the most, what is the niche service you've been giving the most of. This should tell you, steer your business in this direction, and focus more on this area. Businesses often miss this when they're looking at ways to streamline their model, don't look at your business as a day to day ordeal, make sure you have takeaways from every transaction.