As 2023 begins, it’s time to consider a budget planner for small business growth.

Precise planning for early 2023 can be a little tricky. Because 2023 is full of uncertainties.

Cooling sentiment in the U.S.-China tariff war led to a Phase 1 deal, but a Phase 2 deal remains unclear.

Meanwhile, the International Monetary Fund (IMF) and the World Bank have warned of a possible global recession in 2023.

As the economy enters a period of economic uncertainty, it’s time to properly prepare your 2023 business budget plan. This is to minimize potential loss of business.

Here are 5 budgeting tips for small businesses in 2023.

1. Pool emergency funds

Having an emergency fund to help cover unexpected expenses is important because it can support your business budget.

Economic woes in 2023 could prepare for the worst, analysts predict. So, you should expect.

We’re not just talking about tariff-related costs or reduced consumer spending. If your company’s financial situation deteriorates, an emergency fund can help your business recover immediately.

In fact, having an emergency fund is very important. According to the Federal Emergency Management Agency (FEMA), when emergency funds are used to bail out failed businesses, 90% of businesses are closed for up to five days.

You can budget for your emergency fund by cutting costs where possible and reviewing your personal expenses and allocating them to your business.

2. Faster Loan Submission

If you are considering applying for a business loan, line of credit or other business financial products to grow or support your business. You can’t wait until your financial situation is worse than it is now.

The best time to apply for financing is when you don’t need it, because you have enough cash flow, or when there are no pressing issues draining your bank account to deal with.

A bank or lender is happy to see a small business with a strong and growing coffers. Applying for a loan when your business is in recession is different.

3. Focus on ROI

Any investment in your business should consider the returns you will receive. ROI (Return on Investment) or profit.

When your business is experiencing a potential downturn, you can try new forms of marketing, such as social media marketing or influencer marketing. This will help you acquire new customers, build your brand and increase your revenue.

At the same time, the biggest challenge in marketing your business is retaining existing customers and converting them into loyal buyers.

4. Lower fixed costs

Flexibility will be a key factor in 2023. Therefore, you may want to plan to reduce the amount you save for long-term commitments.

This can affect many parts of the business infrastructure, slowing business revenue and causing it to shut down.

Flexibility budgets allow entrepreneurs to use a co-working space for their business, rather than signing a one-year commercial lease.

In some cases, flexibility is worth the price. Consider whether you sign up for a program that incurs long-term fixed costs.

5. Seek the opinions of certified public accountants

Our Certified Public Accountant Analysts (CPA) can advise you on the best investments you can make for your business. Opportunities for business growth are everywhere, and 2023 could be your best year yet.

But to take advantage of this opportunity, you need to start with a solid foundation. This means you have a really good and responsible budget to do it.