![]() And staying in control keeps you from feeling stressed out and freaked out. We can’t say it enough: Budgeting helps you stay in control. And (you knew it was coming) actively follow a budget to do all of the above like a financial ninja.Īs a business owner, one of the worst feelings in the world is wondering whether you’ll be able to keep your doors open-and money problems are almost always at the heart of that fear.Move at the speed of cash (aka no debt).Spend less than your business is earning.But you can do better than that just by applying a handful of important money principles: The main reasons these businesses went under? They didn’t start with enough money in the bank, missed their revenue projections, didn’t pay their quarterly or payroll taxes, and hit the wall with cash-flow problems. And only half of small businesses survive after five years. Out of the small businesses that opened from 1994 to 2019, 32.4% of them closed within their first two years. Sound dramatic? Check this out: There are 32.5 million small businesses in the United States. Your business won’t survive without budget. Maxwell sums it up: “A budget is telling your money where to go instead of wondering where it went.” It also helps you decide what to do with business profit, when and where to cut spending and grow revenue, and how to invest for growth when the time comes. It gives you a roadmap for predicting and tracking expenses, revenue and profit. That means you need to count every penny that comes in or goes out of your company! When you run your business on commonsense financial principles, you’re setting yourself up to be like the little pig who built his house out of bricks, not hay or sticks.Īnd the other really good news? You don’t have to be a numbers and spreadsheets person to build the skills you need to make a solid business budget and manage your company’s finances with confidence.Ī business budget is a plan for how you’ll spend the money your business generates-every month, quarter and year. If you’re a small-business owner, you know firsthand that every penny counts. In fact, bad accounting is the main reason many small businesses fail. The thing is, your business can’t run unless you carefully handle priorities like creating your business budget. ![]() But getting them to nail down the details of running a business can be like trying to nail Jell-O to a tree. They’re risk takers, visionaries and motivated mavericks. Entrepreneurs are idea generators on steroids.
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