Owners of small businesses can easily get caught up in the day to day of running a business and forget to watch for things that can affect the bottom line. Some expenses may come up infrequently but be crucial for the business to succeed.
For instance, the owner of a car wash must include car wash maintenance in the monthly budget. The technicians that perform this type of maintenance will not be needed every month. However, the annual cost of these services should be divided by 12 and included as a monthly budget item to ensure the money is available when it is needed.
The car wash owner must have insurance that protects the owner’s investment in case of fire, flood or other liabilities. Insurance also protects the owner in case of malfunction of equipment that could cause costly damage to a customer’s car — another reason consistent car wash maintenance is important. These policies are billed once a year, so the business owner needs to plan for them. The owner should shop for the best price on these policies every few years assuring the business gets the best rate.
Local taxes, like school, county and city taxes, are due once a year. Sometimes these bills can be due the winter when the car wash business is slower, and funds are low. If these taxes are not paid by their due dates, penalties and interest can add to the amount the business owes. Many of these local entities will take payment with a credit card. This can be an advantage to a business that needs to break up a larger bill over a few months’ time.
If small business owners anticipate the type of expenses that come up infrequently, they will be able to pay these bills and keep their business running smoothly. A little planning can go a long way toward protecting a company's financial core.