2016-11-10 00:00:00BudgetingEnglishTry these three simple and easy budget resolutions that can help your small business drive revenue growth in the new year.https://quickbooks.intuit.com/ca/resources/ca_qrc/uploads/2017/03/business-owner-goes-over-budget-with-accountant.jpghttps://quickbooks.intuit.com/ca/resources/budgeting/3-budgeting-resolutions-you-should-set/3 Budgeting Resolutions You Should Set Now

3 Budgeting Resolutions You Should Set Now

4 min read

It’s typical to make resolutions at the beginning of the year, but any time of the year is a good time to set new goals. When you are constantly reexamining your business and looking for ways to improve throughout the year, you can more effectively grow your business’ profitability. If you feel like revenues are not meeting your expectations, you should set goals for making changes now that don’t require busting your budget but help drive profits to your bottom line. Some actions are quick and easy fixes that don’t require spending a lot of money, while others take more time, effort, and financial investment. Each positive change you make throughout the year helps improve your business and gives you more money for your budget next year.

Are You Maximizing Your Ad Budget and Social Media Impact?

When budgeting for a small business, you can boost your sales without spending big money now by tapping in to social media. If your business isn’t on social media already, it probably isn’t performing as well as it could. Social media is a free marketing tool that can reach thousands of potential customers, so you don’t have to dive into your budget to get started. You should set up profiles on Facebook, Twitter, and Instagram, which are easy ways of driving lots of eyeballs to your business. You get more exposure quickly without spending big advertising dollars if you don’t have them in your budget. These social media platforms help you stay connected with your current customers or clients, get exposed to potential new business, and provide you with valuable market research data you can use to build customer relations. The information you gather can help you make informed decisions about how to spend the advertising dollars you do have in your budget. You may decide to adjust your budget to buy ads on social media sites or pay to promote posts to maximize your exposure to current and potential customers and clients.

You might consider carving out funds from your budget for Hootsuite to manage your entire social media marketing strategy across all platforms in one spot. It’s a social media engagement tool that integrates all of your profiles, engages with your customers, and develops analytics reports, so you learn about who’s checking out your business. You can use it to schedule and post articles, blog posts, and tweets automatically, which saves valuable time. If you’re at zero dollars budget-wise, an online search for free social media management tools can keep your budget intact while giving you some time-saving technology and automation help.

Intelligent Marketing Can Stretch Your Budget Dollars

Many businesses build their successes on a cornerstone of intelligent marketing that stretches their budget dollars. If you create a good campaign, it can generate several dollars in new revenue for every marketing dollar you spend. Your budget and bottom line benefit when you get sound marketing advice and make wise marketing decisions. Instead of trying to market your business by just placing advertisements here and there and hoping for the best, you should set aside time for obtaining market intelligence about your industry and customers or clients. You might want to combine this intelligence with the data you get from your social media sites. Then you can use it all in developing a more efficient and cost-effective method of marketing. Consider starting by identifying some of your customers’ most common characteristics and targeting prospects that look like them. This type of targeted marketing gives you a higher rate of converting prospects to customers, and it’s cheaper than placing ads without a focus.

You should set your sights on marketing to prospects you have a greater chance of converting, and avoid spending your marketing budget on people who aren’t likely to become your customers anyway. Taking this focused marketing approach yields a greater return on your investment and enables your marketing budget dollars to go further.

You Should Set Times for Profit Margin Reviews

You should set aside time for reviewing your small business costs and revenues periodically. Your business’s goods and services costs have probably been rising over time. If so, you might consider passing those higher costs to your customers or clients, so they’re not throwing your budget out of balance and eating away at your business’s bottom line profit. It’s wise to review the profit margins for comparable businesses in your area, too. If you’re an accountant and you’re generating a 15% profit margin while similar accounting businesses are producing 25% profit margins, perhaps you should evaluate whether to raise the prices you’re charging your clients or customers. By changing your pricing structure to reflect what’s normal for your industry, you may be able to increase your bottom line profits without losing business. With increased prices, you generate more revenue that boosts your bottom line.

At the beginning of each year, you should set goals and assess the health of your enterprise, and then make budget and strategy adjustments as you need them throughout the year. Always know exactly where your business stands. Make smarter business decisions now.

Information may be abridged and therefore incomplete. This document/information does not constitute, and should not be considered a substitute for, legal or financial advice. Each financial situation is different, the advice provided is intended to be general. Please contact your financial or legal advisors for information specific to your situation.

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