Creating a Budget for Your Pet Care Business
We know creating a budget is not everyone’s strength, but we also know budgeting is key to having a truly successful business. When you have data you can make great decisions and a budget will help you do just that. Let’s focus on the ins and outs to EASILY create a budget for the new year.
Start by stepping back and thinking about how you want your business to look next year as far as services offered and total revenue earned. Do you want to add a new revenue stream, cut back or delete an underperforming service? You’ll want to create a budget for what your business will look like in the future and it’s okay for that to be different than today.
We recommend starting with budgeting for your revenue and planning for each revenue stream you offer. For your key services you’ll want to plan based on monthly volumes and average rate earned. Consider growth targets for pets serviced and build into your plan plus the month of any rate increases.
On the expense side we recommend spending the most time with the big 3 expenses.
- Payroll – consider when you will give existing staff raises, minimum wage increase mandates and any new positions you may need to add based on growth or new services
- Marketing & Advertising – create your marketing plan and overall budget
- Facility Costs – check your lease for rent increases and then plan utilities and insurance based on current year costs
The best part of the budgeting process is that if you are not happy with your bottom-line results you can change your plan. Update your budget based on your new plans until you are satisfied with your financial plan for the next year. Be sure to watch our video for a way you can increase revenues without adding volume or raising rates. It’s a great way to immediately increase profits and your own pay!
