Incomings and outgoings – are you on top of them? Gaining full visibility of what’s in front of you is crucial, but so is predicting what’s to come in an industry that’s infamous for its volatility. This is where budgeting comes in, helping you to control costs, predict the future, and ultimately maximise profit.
Read our top tips on how to get it right just in time for the Spring Budget, so you can maintain growth for your hospitality business.
1. Play to your strengths
Identify which elements of your business reap the most financial rewards, and ensure your budget supports them. This doesn’t mean taking your eye off the ball in other areas, but it’s about identifying and doing more of the things that work best.
Map out your strengths (and your weaknesses while you’re at it), and distribute your budget accordingly across these areas. You might just find a bit of extra revenue rolling in, which always helps to maximise profit and maintain growth.
2. Keep track of cost changes
Even the most careful budgeters can suffer from a bit of tunnel vision. Of course, lasering in on your day-to-day operations as a means of controlling and predicting spend is crucial. But not keeping up with other changing rates could throw all your calculations into disarray.
Think about Brexit, the National Living Wage, credit card fees and energy costs. Payroll, wages and bills are all directly affected by these factors – so when they change, your budget should too. Keeping on top of new developments like these can prevent overspending and also help you capitalise on opportunities.
3. Forecast future costs too
Looking ahead might mean focusing on areas for investment, preparing for expected industry events or even anticipating the unexpected. The point is, the future is just as important as the here and now when it comes to maintaining growth.
Investment areas could include staff training, while industry events could include busy or quiet periods depending on your target market. But when it comes to expecting the unexpected, it’s always advisable to keep some cash reserves, just in case of, say, a pandemic…
4. Utilise the latest technology
Up to your eyes in documents and spreadsheets? Planning an effective budget without organisation and efficiency is a dangerous game. Not only can it be massively time-consuming, but this is how mistakes happen. Here, going digital is invaluable.
From finance-related tools like cloud accounting to hospitality-related programs like scheduling software, with the latest tech all working in harmony, you’ll gain a more transparent and accurate view of your numbers while being able to better manage expenditure on things like wages. It can be a real game changer for your budget.
Budget for growth with Nabarro Poole
Getting ahead of the game when it comes to your finances is key to growth, especially when change is constant. At Nabarro Poole, we always have a hawk eye on the future, and are trained on the latest technology to help advise, budget and forecast your business to success. We offer professional financial services right across the accountancy spectrum too!
What’s more, our director has over 10 years’ experience in the hospitality industry, and we consider ourselves specialist accountants in the space. To talk through your challenges and aspirations with someone who just gets it, speak to our friendly team today on 0161 998 4276 or email info@nabarropoole.com.
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