What are the tools you need to create a budget? Most would think a crystal ball. How else would anyone know the future? This is where most that fear budgets go wrong. Why? My guess is that most small business owners don’t really understand budgets. So what is a budget? A budget is not a prediction of the future, but instead an estimate, or best guess, of what will be. A budget is your business plan written in the language of dollars and cents or a road map that points you in the direction of achieving your goals, for a month, a year or beyond.
If your Business New Year’s Resolution has mention of finances, then a budget would be the second step after creating The Elusive Company Vision. It is always nice to know where you want to go, but how to get there is the majority of the battle. Don’t misunderstand that because budgeting is such an important task it must also be an overwhelming one. Any owner who “knows” their business can put together a well planned, realistic budget. Over the coming weeks we will do just that, step-by-step create a working road map toward your vision.
Tags: Budgeting, business finances, Business Resolution, company vision, small business, Well planned budget.