- 1). Analyze the income or sales portion of your small operational budget for the period. Investigate ways to increase that figure, whether it's through low-cost advertising or by encouraging your sales team to upsell (try to sell more than usual to the same clients).
- 2). Sort through the various variable expenses associated with your operations. Part of managing your budget is seeking to reduce your costs while maintaining or increasing the quality of your offering. Call existing suppliers to see if you can get a better rate on the raw materials and products you buy to resell. Seek out new suppliers who cater to small business operations and can offer competitive rates despite relatively small orders compared to larger corporations. The lower your variable costs, the higher the gross profit listed on your operational budget.
- 3). Examine your overhead and other fixed costs to see where you can make cuts in your budget. For instance, for a small company, you can consider moving to a home office instead of renting a separate location.
- 4). Attempt to transfer any loans or credit card balances for your business operation to lower-interest-rate accounts. This will reduce your interest cost, which also gets deducted from your gross profit. If you've been funding your small company with personal debt accounts to date, apply for a low-rate small-business loan or credit card which may offer a better rate and terms.
- 5). Check your operational budget regularly --- at least every week --- to ensure that you're generating a profit or at least achieving a balance between income and expenses. If you notice any problems, make changes in your operations immediately to fix the issue.
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