Give yourself room to move
At its core a budget is adding up costs and taking them away from earnings to find out what’s left. Not every toea is meant to be spent. Overestimate costs to give yourself a buffer. Hidden and unexpected costs may pop up such as the pandemic in 2020. Alternatively, you might want to grow or reward the team!
Keep on tracking
Keep track of what you’re earning and spending. It’s easy to get caught up in the day-to-day and forget to regularly review your budget for unnecessary costs or opportunities. It’s a work in progress.
Project your budget
Review your budget and predict what you’ll earn in the next year. This will help you plan future investments and business strategies. If one revenue stream is performing really well it might be worth expanding in that area down the track.
Put value on your own time
It helps to understand how much your time is actually worth. Divide your revenue by the number of hours you work to figure out what one unit is. You can then assign value to different tasks and find out which ones are worth doing.
Get affordable finance
There are affordable finance options in Papua New Guinea. Kina Bank’s business loans are designed to support long-term growth with uncapped lending limits, flexible loan terms, and market leading rates. You can apply for a loan here: kinabank.com.pg/business-banking/kina-business-loan
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