When you are in business it is important to budget with a purpose!
We have a dream which results in a vision and transpired into reality only to become a nightmare!
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This powerful statement gathers the thoughts of many existing business owners. Quite often, we get so caught up in what we want to do, we forget or by-pass some of the most important tasks that need to be completed.
The sources of information which are available today are endless, with each one having a working theory of what could be done, or what you could do. Let’s put that into perspective, if money, time, and ideas were unlimited and readily available, every single person that has a small business would be successful.
But the truth is; blood, sweat, tears, and money are what is required to master the difference between what you need vs. what you want. One of the biggest hurdles to jump through is financial status.
Remember the business plan you drew up with the business budget you created when you first started?
· Did you follow through with both or either?
· Are you still maintaining your original projections?
· Do you even still use it or is it collecting dust?
Quite often what we visualized as requirements of which we made the investment or the purchase of turned into money wasted. This is why a budget is vital for a small business.
Think of it as your mirror to look at aspects of your business which not only produces income but also what the income is used for. Your budget should effectively calculate your income and detail your expenses to result in a profit.
Are you ready to revitalize your existing budget?
Step 1: Identify and define your goals.
Step 2: Define what you currently have.
Step 3: Visualize what you hope to achieve.
Step 4: Calculate the costs of what you need.
Step 5: Create a wish list of what you want to have.
Step 6: Develop a realistic budget based on your cash flow.
Step 7: Use your budget to keep you on track.
Step 8: Modify your budget as required and keep it current.
Having everything in one place allows for reflection and becomes your decision-maker as it helps you to monitor your business performance.