Business planning is one of the most disregarded and avoided elements of starting and building a successful business. It’s quite surprising since one of the top 10 reasons small businesses fail is due to poor planning. Poor planning simply boils down to not identifying the necessary resources, tools and strategies to be utilized in all areas of the business, from marketing to finance and every area in between.
One key part of the business planning process is creating an annual and monthly budget. Budgeting is deciding how your financial resources will be allocated among the various business needs. It also helps you be proactive in your decision making versus reactive. You can think of it as your road map for success. It will prevent you from investing in every new bright shiny object. Simply put, if the expense is not in the budget then it’s not a priority nor a factor in achieving your profit goal.
No one knows the future and there will be unexpected revenue and expense challenges but your budget will help keep you focused on the actions necessary to achieve the profits you desire. Below are a few additional benefits of creating a budget for your business.
Benefits of Budgeting:
- Controls and monitors spending
- Measures the financial operations of your business
- Outlines projected revenues and expenses
- Ensures you achieve your business goals
- Proactive and forward thinking management approach
Entrepreneurs that go beyond understanding the benefits of planning to actually implementing and creating a budget for their business will succeed. Those that do not will get an “F”, for fail. Have you created a budget for your business? If not, then I have a very special invitation for you.
If you want to learn more about building a profitable business, raising your fees (without losing business) and ensuring you achieve your financial goals and budget? Then I invite you to join me for my upcoming complimentary teleseminar, “Explosive Profits: 3 Profit Boosting Secrets Revealed“, happening on April 25th at 7 pm CST / 8 pm EST. This is one profit building teleseminar you don’t want to miss. Plus, there’s a bonus giveaway but you must be on the line to win!