Before you panic, think about how often during the year, our businesses need some budget re-evaluation.
We small business owners are getting hit particularly hard during this Covid-19 crisis. Additionally, there is uncertainty as to how soon we will see a recovery.
All of this has led us to review our budgets and finances. We are told not to panic. This is about the best advice we can take. However, vigilance and planning are necessary to keep our minds sound.
Think about how often during the year, our businesses need some budget re-evaluation. Let’s start with a few steps, just to get our minds a little calmer.
Furthermore, some of us who are used to working offsite are now having to work from home. And this adds more adjustment.
Cost Evaluation
While some of us are taking in less money, there are also expenses that will be lowered. Auto travel/Air travel for instance. What are the cost savings there? We are no longer needing to use as much gas, get our cars washed or detailed, and air travel is…well not happening.
Then, there are added expenses. I used to have a free Zoom account for online meetings with my clients. However, I am now meeting online at least three times a week. So, I upgraded my account. This was an additional $14.99 a month. Not too high of an expense. Especially in comparison to auto costs.
Essential Costs
Now is a good time to re-prioritize essential costs. Because there will be changes. Business clothing and accessories, lunch money, hair & nail salons, etc., are probably no longer in the top 5.
Healthcare, food, household products, utilities, and home mortgages/rent are at the top. Nothing new here.
Food & Household Products
An additional gas savings cost (and healthier option), would be to use as many subscription services as possible. These might include:
- Amazon subscriptions
- Meal delivery services – Think Home Fresh, Dinnerly, Sun Basket.
- Milk delivery services
Any opportunity to avoid going to the grocery store the better. This might cost more, however, your peace of mind/health is of maximum priority right now.
Investing
If you have money invested at this time, now is not the time to panic and start cashing in. This is America, we WILL recover. I once had stock in a business that dropped considerably. Within 2 years, the stock split twice. The final cash out was a happy day. Indeed, I was grateful that I held on to the stock.
Right now, I keep money in a SEP-IRA and in Equity 500. As with the above, I am choosing to hold on. I trust the process.
And don’t forget your savings account…
Giving
Recently, I was listening to The Minimalist’s podcast and they reminded me of the importance of continually giving. We put out more stimulation than our expected Government Stimulus checks that are on the way. Trust me with this one.
Now is not the time to close your pocketbooks to the many non-profits that rely on donations to continue their good work.
“I have found that among its other benefits, giving liberates the soul of the giver.” ―Maya Angelou
Budget Re-Evaluation
In my earlier blog, “Budget Preparation – A Necessary Evil”, I talked about my use of a “rolling-budget”.
Though there are many advantages and disadvantages of rolling budgets, now appears to be a good time to give it some consideration.
Did I miss anything?
I would be happy to hear what you are doing right now.
Have you started your Budget Re-evaluation process?
Please comment.
Stay productive – and prosperous my friends. – e
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