Breyer Home Buyers’ Owner Provides Commentary in New Small Business Budgeting Survey Report
Nearly 61% of small businesses are operating without an official, formally documented 2018 budget, according to new survey data from Clutch, a leading B2B research firm in Washington, DC.
Clutch surveyed more than 300 small business owners to gather the data.
Shawn Breyer, Owner of Breyer Home Buyers, provided commentary on the data, sharing his business’ experience with budgeting.
Breyer discussed how, in the early days of his business, they operated without a budget.
“We were flipping houses and bringing in profits, but at one point we had three house flips going on at the same time, and one of the renovations had unexpected repairs that cost us a significant amount of money.”
Their lack of budget left them unaware of their cash flow.
“Since we didn’t have a tight rein on the money going in and out, we ended up running out of cash and had to scramble to find a private lender to help us finish the project,” Breyer said.
“When we sold that property, we lost $23,000. After that, we budget expenses, reserves, and taxes every week so that we don’t have the same situation happen again.”
Breyer learned from experience – budgeting is a critical task for running a successful and stable business.
While owners may think sticking to a budget is impossible, given small businesses’ daily obstacles, Clutch’s survey found that 50% of small businesses that did the budget in 2018 spent about what they planned for in the first half of the year.
Clutch survey recommends that small businesses keep an eye on their original goals and review their finances regularly to stick to their budget.
Breyer also discussed the importance of creating a marketing budget specifically. In his business’ early days, they often spent inconsistent amounts on marketing.
Then, Breyer decided to make marketing a consistent priority.
“We sat down and decided that we wanted to scale the business and reinvest 30% into marketing,” Breyer explained. “Since we started budgeting our marketing for growth, we have gone from buying 1 property per month to 8 properties per month.”