IN Small Business

Small Businesses

Can Travel! by Alison Burns

ISN’T IT NICE to finally be getting somewhat of a normal(ish) flow to life and discussing vacations and summer plans? Since part of this issue is dedicated to travel, from one small business owner to the other, I thought I would use my small business column to discuss our travel needs.

Many small businesses have regular travel needs. Whether it is for professional development, to see clients or make pitches, employee rewards, or to head to market to buy for your customers, are you budgeting for these trips or doing it on the fly as the business may or may not have extra money? And, if you are not budgeting for it: why are you not budgeting for an investment in the future and health of the business?

If you do not have an annual budget, let us tackle that first – start with last year’s numbers, and if you have data from years prior, go back even further. You or your accountant can calculate your revenue growth so you can project it out. I am no accountant, but I can even help with that as numbers are my love language! That projection can break down into top operating expenses, and one of them should be travel if it is important in your business goals. This is where you must get really honest and sacrifices often are a result. Some of the largest expenses for a small business in this order are payroll, credit card processing, and rent. Look for ways to reduce, and if you want a free quote on credit card processing savings, email me!

Now it is time to budget your travel. If this is an expense that has previously occurred, gather those numbers to create a line item. Were all the associated expenses necessary? What can be shaved off? How many people went, and should it continue? These questions will help you to create the line item that you budget, plan, and save for!

Lastly, create policies and procedures around your budget in order to stay on budget. How do employees get reimbursed? What is the per diem, if any? How many hotel nights will the business pick up? What is expected of an employee and the business in the event of a cancelled or delayed flight? Does the business provide travel insurance in case the airline loses a bag? The unplanned for things can certainly blow the budget and cause a lot of unnecessary stress in the process. If you have questions concerning business travel or slashing business expenses, hit me up at my email, aburns@ precisionpaymentsystems.com. Happy traveling (whether work or personal). Viva la normal life!