Well, you made it through the first year of a pandemic. I know it wasn’t part of your plan and I know it wasn’t easy, but you made it. Like many business owners, you may be suffering from income loss and I want to share some tips on how you can adjust your budget during a pandemic.
- Check your budget
Sit down and plan a realistic budget. Take a look at your income over the past year and see what your business is bringing in on average. This is the starting point of all budgets, pandemic or not. Also, take a look at your expenses and see where the gap is.
- Cut Expenses
If you have more expenses than you do income, it’s time to evaluate your expenses and see if there are any you can cut. Maybe you have rented office space that you’re no longer using if you’re spending most of your time working from home. Manage any subscriptions you may have and see if you can put them on hold or cancel them for the time being.
- Reach out to Companies
Some companies are willing to negotiate payments right now. If you’re struggling, reach out to companies and see if they can defer payments (like rents or mortgages), lower costs (like internet, phone bills, or interest rates on debt), or offer a subsidized program. If you’re not commuting to work, can you reduce your auto insurance?
- Increase Income
I know this isn’t always achievable but reach out to potential clients or clients who have shown an interest. Maybe you can offer a discount or throw in extra services for free. Remember this is short term, it’s just to keep your business. Look around the house and see if there are any items you can sell. I’m not saying to sell your couch or your dresser, but maybe you have clothes that are taking up space, or workout equipment that you swore you were going to use. Increasing income doesn’t just mean working more. Get creative!
- Adjust your budget
Now that you’ve reviewed your income and expenses, adjust your budget. And continually review and adjust your budget. Remember, a budget isn’t a one-time thing. Now more than ever, you need to be checking in and re-evaluating it on a constant basis, especially if you’re experiencing irregular income. If you have a really great month, try to save that extra income in an emergency fund incase of a not-so-great month.
Running a business during a pandemic has been hard. If you’ve had to use credit or if you’ve built up debt due to a loss of income, that’s okay. Remember, it’s a short term solution. I hope these tips can help you find a way to help you adjust your budget and make it work for you. If you need help, please feel free to reach out and we can develop a plan together to get those numbers working for you. Even during a pandemic, you can have sassy and sexy numbers.
