On day 5 of this process you were asked to prepare an itemized budget for your company. Included were all your operating expenses and projected income. Your own salary should have been incorporated into the budget. In the past six weeks you have been asked to participate in an intensive business generating program. Now is the time to see how your original budget survived with all the new marketing efforts.
Unfortunately, most small business owners operate out of a check book; if there is money in the account, they pay bills. For today’s assignment, take a look at the last 6 weeks and itemize income and expenses. There are several things that should be noted:
- Do you have a record of every penny you have spent?
- Do you know in what part of the budget these expenditures should be placed?
- Do you have a record of all your income?
- Can you account for the source of your income in the last 6 weeks?
If you don’t have the figures at hand necessary to answer these four questions, then start now and come up with the answers.By now you should have selected your most effective marketing systems and, by answering these four questions, you can determine the portion of your budget that is necessary to maintain and grow your business.
Accounting for every penny is essential for small business growth. Each month you should review your projected income and expense budget versus the actual income and expenses. Numbers tell the truth about our business. They tell you when to chance direction, offer new products and services, when to merge your business and even when to take a paying job.
As a business coach, I find that the maintaining a budget is one of the hardest things that my clients have to do. By maintaining and understanding what your budget tells you, you are building a solid foundation for future growth.
A person’s judgment if no better that his information.
Have a great day!