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More than number crunching

Business budgeting is about how you can grow your business by figuring out what is really necessary and important, and then, allocating your resources behind those goals and beliefs.

Part of the budgeting process is creating a reserve; things don’t always turn out the way you plan. Unfortunately there are things beyond your control, such as an economic downturn or a market shift where your product/service falls out of “favor”.

Remember, too much of anything is risky. Don’t create a reserve that is larger than necessary and it takes away from the needed resources to grow your business. How much is enough? I equate a small business to a family; a good goal is at least a six month operating account which will allow the business to function without any income.

A six month period is, in my opinion, the minimum time necessary to re-invent your business and to develop and implement a new action plan.

Budgeting and financial record keeping is, many times, the last thing that a small business owners pays attention to. The purpose of the business is to create a profit and the budget ( if well done) is the control and measure as to the progress the business is making.

If you are working without a budget, make it your goal this coming week to establish one. This is a time consuming process which requires a lot of thought, and  in order for it to be effective, deserves your full attention. Once established, allocated two hours a week to work on your financial records and to measure your progress against your budget projections.


Business is like riding a bicycle. Either you keep up your speed or you’ll fall down.

Have a great day!

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