Budgeting may seem a mundane task for most small business owners in New Zealand, but it is an essential activity to ensure long-term success. I have here five of the most effective steps that you can use to create a small business budget.

  1. Smarter Money Management

According to Janine Allis, the founder of Boost Juice, it is important to do a smarter money management for you to grow your business, so being vigilant on your expense record is a must.

That is why it’s vital to check your monthly sales and expenses and pinpoint which area of your business has most expenses.

If you look closely to your monthly expenses and sales, then it will provide you an overview on which months are your strongest and which are our weakest, so you can determine when you have the highest costs.

The break down of these factors will include the following:

  • Labor costs including outsourced and in-house staff
  • Office expenses including fixtures and computer devices
  • Recurring costs which include rent, utilities, etc.

Your next step now is to subtract all your expenses from your monthly revenue then you’ll need to compare these figures to your financial goals. This will give you an idea if you are still on track or you need to cut back on your expenses.

If your business is still new, and you’re just starting out, you must make estimates or ask to advise from your financial adviser in New Zealand. You must also do some research on other businesses that are within your niche or field and know their typical costs and revenues. It’s unwise just to guess your estimated budget – it will lead you to unrealistic estimates, and it might have dire consequences for your small business in New Zealand.

  1. Know Your Income Sources

Every business owner in NZ must know where his money is coming from, and this can be done through the proper organisation and by breaking down your income into two streams: one-offs (government grant) and recurring income (income from your business). So, it’s important that if you take a small business loan NZ, that you also add the repayments on your expenses list like the one below:

creating small business budget in new zealand expenses

You’ll need to track your monthly expenses.

The step that is highlighted above focuses on separating fixed costs, such as your rent and insurance and subtracts from your variable costs like employee wages, office supplies, and other marketing expenditure.

  1. Determining Fixed and Variable costs

To effectively determine the variable and fixed costs of your small business, you need to write down all of your expenses and create both a monthly and annual table like the one below:

After you’ve created the table and customized it according to the expenses of your business, you can then use it to determine your profit.

  1. Determine Your Expected Profits During Financial Year

Based on what Jessica May said, founder and CEO of Enabled Employment, projecting the total costs and profits is the key to a success business in New Zealand.

Therefore, it’s essential that you project at least 5-6 months ahead using spreadsheets that will automatically calculate the total costs vs. what you are hoping to profit at the end of the year. That is why you may need to hire a contractor CFO to you help you out with this task.

For small business owners NZ who are looking to manage their own expenses, they need to deduct the total yearly cost of expenses from their yearly income total.

For example, if your total income is $283,400 and it exceeds the total expenses of your business of $207,400, then you have a healthy yearly profit of 76,000.

The whole premise here is proper and effective budgeting to ensure that your income will always be on top of your expenses. Always keep in mind that having an adequate budget will help you improve your finance; you provide you the ability to identify the biggest costs and revenues.

For most business owners in NZ, it highly recommended building a safety margin of least 10 to 20 percent around revenues, to act as a buffer in case an unfortunate event happens.

  1. Always Update Your Budget

The final step that you need to consider in your small business is to always update your budget. In fact, it is recommended that you do this on a monthly basis, especially if you’re a small business owner in New Zealand.

Overall, a well-planned budget for your small business is vital because it will enable you to determine where your money is going, and in the end – you’ definitely achieve your financial goals.

As a matter of fact, you need extra funds for expansion – so if you’re looking for unsecured small business loans NZ, then we urge you to talk to our financial adviser because we can help you take out a business loan that is just right for your needs.

TESTIMONIAL

russell barret small business owner new zealand small business loans

Russel needed an injection of cash to pay his employees while he was waiting to be paid. We were able to have the funds in his account 48 hours after he first applied.

RUSSELL BARRETT
small business loan for nz - max

Max needed funds to renovate his restaurant in NSW. He didn’t want to put his property on the line to secure a loan with the bank. We were able to get him over 100k without offering any security.

MAC RICHARDSON
anna smith business loan new zealand

Anna needed funds to renovate her practice in Adelaide. We were able to get her the funds she needed with only providing her business bank statements and photo ID.

ANNA SMITH

OPENING HOURS

Week Days9:00 – 5:00
Saturday9:00 – 1:00
SundayCLOSED

0800 839 383

OFFICE LOCATION

Level 27, PwC Tower,
188 Quay Street,
Auckland 1010, New Zealand

OUR VALUES

Our mission is to make it as simple as fast as possible for business owners to get the finance they need to grow their business

To create a dynamic platform that brings the most up to date finance deals to business owners

To negotiate with our lenders to bring you the best possible deals. We will make sure that we will never be beaten on rate

Get a quote

Our quotes take less than 3 miuntes and can be done fully online. They are fast simple and won’t affect your credit score.

GET A FREE QUOTE

How to Create a Small Business Budget In New Zealand

Get the funds your business needs to grow with a small business loan from bizzloans.co.nz. We smash our competitor’s rates and have flexible payment terms to suit your business.

CONTACT INFORMATION

  • Level 27, PwC Tower, 188 Quay Street,
    Auckland 1010, New Zealand
  • 0800 839 383

NEED FUNDS FOR YOUR BUSINESS?

GET YOUR QUOTE HERE