You can't run your business successfully without a budget. Nobody can. Cash is slippery and cost rise unless closely watched. You can't borrow money from a bank, secure trade credit, or attract investors without a budget.
Your operating budget serves a variety of purposes. It helps you hold down spending, provides and supports financial self-discipline, and helps you set time-lines and measurable goals. It gives you a scorecard, a way of seeing how well you are ding and whether or not you need to change some business behaviors.
You don't have to become an accountant to understand and use a budget. In fact, you are already familiar with budgeting from handling your personal finances. All your operating budget does is set down the expected amounts and timing of revenues and expenses in a standard form that can be used to strengthen your business decisions. Your operating budget allow you to know when you need financing - and when you don't.
Your operating budget serves a variety of purposes. It helps you hold down spending, provides and supports financial self-discipline, and helps you set time-lines and measurable goals. It gives you a scorecard, a way of seeing how well you are ding and whether or not you need to change some business behaviors.
You don't have to become an accountant to understand and use a budget. In fact, you are already familiar with budgeting from handling your personal finances. All your operating budget does is set down the expected amounts and timing of revenues and expenses in a standard form that can be used to strengthen your business decisions. Your operating budget allow you to know when you need financing - and when you don't.
No horse gets anywhere until he is harnessed.
No steam or gas ever drives anything until it is confined.
No Niagara is ever turned into light and power until it is tunneled.
No life ever grows great until it is focused, dedicated, disciplined.
- HARRY EMERSON FOSDICK, D.D.-
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