UPCOMING BRANDS BEING NESCIENT ON BUDGET: 7 ASPECTS OF FINANCIAL SETUP

Branding & Marketing

UPCOMING BRANDS BEING NESCIENT ON BUDGET: 7 ASPECTS OF FINANCIAL SETUP

Every brand seedpod consists of a combination of fear, anxiety, hope, optimism and dream. When it bursts, i.e. when brands initiate their journey, executives are invested innumerable things to figure out and sort as much as they can. The means to sort things out is a proper financial planning process. If you want to be successful in business, you need to know where every penny goes. Not just a rough idea but strategic financial management needs to be on paper. That’s where a brand budget comes in. But according to studies, 46% of small don’t have a dedicated budget. That means half of the brands lack the importance of financial planning and analysis. 

Whether it was the swadeshi movement during the Independence or the decades that followed as the country tried to find its economic footing, buying local seems to be an idea that is baked into the fabric of what it means to be a proud Indian. And now as the global pandemic threatened to derail the local economy, there is again a call to buy local. However, there are a few aspects to identifying the actual brand’s essence. And answer the vital question – is the Indian brand soul essence diminished? We have to discuss a dynamic flow of culture and reception of brand identity through Indian essence in 3 prominent aspects.

STEPS

1. Why

Upcoming brands are starting from scratch with very primitive information regarding the actual market. To sail through fluctuations brands can capitalise on opportunities, maintain financial security and achieve long-term goals

2. Set-Apart

It is undoubtedly intimidating for brand owners to fuse business and personal finances. But keep them both apart to be secured, litigation-proof and taxation-proof with the right objectives in financial planning and wealth management.

3. Emergency

Anything can go wrong in future and having dedicated funds can help you from shaking circumstances. You know you’ll always get surprise expenses when you least expect them and contingency funds for emergencies will safeguard your business when unexpected costs arise.

4. Bunce

Tally your revenue streams, add up all the sources of income and make a dedicated sheet before subtracting expenses and attaining profit figures. Know annual figures and divide them into monthly to understand individual numbers.

5. Designated Cost

Include all fixed costs involved in operations and functionality which can arise periodically and in several formats like rent, insurance, salaries, loan payments, etc. 

6. Varying Costs

There are a few costs directly related to the sales volume of the business which consist of delivery costs, shipping charges, sales commission, advertising and publicity, which vary according to the actual scenario of the business.

7. Statement Paperwork

Now that your business is running, it’s time to do some brief paperwork regarding the profit and loss that occurred throughout. Make a P&L statement consisting of operational revenue, operational expense, income, taxation and net profit (or if unfortunate, loss!).

So there you have it, whether it’s your first or second brand, mastering small business budgeting basics is the key to success. With a small financial business plan, you’ll have insight into how your brand is performing, which will then help you make the right financial decisions to thrive. Whether you’re looking to optimise your financial planning process or get a firm grasp on all of your expenses, there’s something you can gain with these tips. Optimism and aspiration are great for brand building, however, you shall take money management seriously as it will affect your brand life significantly and keep you rooted with substantiality check!

 Good luck!

Branding & Marketing