BUDGETING - NOT JUST A LENDING TOOL

Many Small Business owners think of budgets as 'something the bank wants to see to approve the lending I need'. Whether that be for a new asset, a new property to add to the portfolio or the purchase of a new business. Budgets and budgeting are 'dirty words', a necessary evil that I have to get my Accountant to prepare if I want my bank to give me what I want. If you think like this and you own a small business, you are not alone! In fact, you are in the majority.

The reality is, budgets can help with so much more than that. Budgets can help you plan and set goals and then help you measure those goals. They can help you forecast future sales so you can make informed decisions on whether to increase your prices or add a new product line or market. Budgets can help show you where you can cut costs and become more efficient and help to identify areas that need improvement in your business, or where you are overspending.

A budget cannot do this alone, however, it is not enough to simply prepare a budget or have someone else prepare a budget for you. To get the most out of your budget, you ACTUALLY need to USE it, APPLY it and MEASURE YOUR RESULTS against it, not just once, but consistently! It is only when you start to do this you will discover that a budget is your friend, not your enemy.

If you want to, become more intentional about managing your business, (expanding, cutting costs, increasing your profit) talk to us today about how to use budgeting as an effective tool to help you Thrive.