Whether you are planning to upgrade your commercial kitchen equipment or invest in light goods and consumables, you need to keep your budget in check. This blog post will share some insider tips on how to stop your budget running away with itself.
No matter the project, make sure you are keeping your budget in check.
- 1. What is your budget?
Before you jump right into the project, you need to know what your budget is. There is no use starting off on a project with big ideas, without understanding how much money you can spend. By understanding what budget you have to work with, you will know what price range you can work.
If you go into a project blind, you run the risk of a project stopping mid-way through or facing disappointment upon completion.
- 2. Be realistic
When it comes to setting a budget, make sure you are realistic. If you over-exaggerate the numbers, you will be faced with disappointment later down the line. Look at your accounts, check it twice, ask a reliable source to review your budget and work with a budget that is within your means.
You don’t want to pluck a number out of thin air, spending the majority of your money on the first few items, only to realise you don’t have enough to complete the project.
- 3. Understand what you want
When you have established a budget, you should understand what you want. We advise making a list of the things you absolutely need, and the things you can compromise on. This will help the budgeting as you can spend the most on what you need the most and less on what you do not.
- 4. Flexibility
No matter the project you are undertaking, compromise is an essential factor when budgeting. Sometimes things don’t go the way you plan, which is why it is vital to be flexible. You might have to consider cheaper alternatives or different options for elements of your projects. Be open to using recycled items or researching alternative ways to carry out a project in a more cost-effective way, without sacrificing on quality.
- 5. Keep records of spending
Make sure you keep records of your spending, including keeping digital and physical receipts. This will allow you to make sure the right amount of money is being spent, and you can keep track of your spending to make sure you do not go over your budget.
- 6. CapEx vs OpEx
So what does this mean? Your CapEx (Capital Expenditure) is the initial cost of procuring your choice of equipment. Your OpEx (Operational Expenditure) is what it will cost to run and maintain going forward. As a rule of thumb, higher quality equipment will be more reliable and more energy-efficient, reducing your repair and utility costs going forward. Liken it to the purchase of a car and you can’t go wrong.