Budgeting, every business should have a clear plan and a budget. It doesn’t have to be elaborate, but it does need to define the business so you can keep it in the direction you want it to go.
“If you aim at nothing, you will hit it every time.” – Zig Zigler
It doesn’t have to be elaborate, but it does need to define the business so you can keep it in the direction you want it to go.
A business that doesn’t budget sets itself up for a host of financial problems down the road. This is true for businesses of all ages and sizes.
Budgeting is particularly important for small-business owners, who often operate on a shoestring budget. Being even a little bit off on cost projections or earnings can have a devastating effect on a small operation.
A carefully constructed budget allows a business to continually track where they are financially. This allows for strategic, long-term planning for everything from current operating costs to potential expansion. Knowing where the budget stands opens up the ability to hire new staffers, invest in new product lines and set earning goals in line with the business financial objectives.
Preparing a budget can be a lot to get your head around. All those numbers spread among so many tasks over so many months can leave you dazed. But, it’s an essential part of maintaining your business, as important as any marketing plan or advertising campaign. After all, you can plan for either of those unless you know how much money you can spend.
Pathways offer a one-day course to help you break down the information above. Our one-day Accounting & Financial Management Demystified Course is a great start to get things on track.
Author & Presenter – Andra Moody