It could be that you are aware that big businesses use budgets, however you are unsure if it’s something you should be doing in your business.
Here are some reasons I think budgets could help your business.
We are all aware of the benefits of setting and working towards goals in our personal life.We set goals so that we don’t float aimlessly through life, so that we can stay focused and for the increased confidence and motivation that comes from achieving our goals. Think of budgets as an integral part of the goal setting process of your business.
Stay in control of expenditure
Preparing a budget makes you stop and look at where your money has gone in the past and enables you to prioritise where your hard earned money goes in the future.
Show the banks that you take your finances seriously. Having a budget to present to potential lenders or investors demonstrates that you are planning for business success and that you are in control of your finances.
Budgeting can be as simple or as complex as you want to make it. I do the bookkeeping for a not-for-profit organisation that has many cost centres, and the budget was a bit daunting to deal with in the beginning. The more exposure you have to budgeting though, the easier it gets.
A good idea is to start simple and add to it as you gain confidence. The important thing is to do it in the first place and to keep doing it on a regular basis.
Do you prepare budgets for your business or in your workplace? Has the above list inspired you to look into preparing a budget for your business? Love to hear from you.