Putting off your small business budgeting process?
Then you need these 5 Budget Benchmarks:
1/ Payroll shouldn't be less than 7% of revenue.
In some service sectors, it can go up to 80%.
2/ Training costs shouldn't be less than 2% of total payroll.
2%-3% are a good benchmark.
3/ Indirect costs: not more than 35% of revenue.
4/ Transformation and R&D budget up to 10% of revenue.
5/ Marketing budgets should range between 2-5%.
And up to 8% if your revenue is less than $5 million.
All of those benchmarks are based on a healthy SMB that makes at least 10-12% net profit.
What about you? Do you have different benchmarks?
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Luqman Shantal
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The business builder | I help you scale your company | Founder, CEO & Business Coach. Built 3 award-winning businesses. 1000s of Hrs coaching 7–10 figure firms.