Starting your own Business?

You have a great idea for a new business.  But you can’t just dive into the business without a plan.  Part of that plan is doing a cash flow budget.   Learn how in this week’s blog.

You are finally ready to jump out on your own and start your own small business.  Good for you!  You have a great idea that you have tested and it is ready to go.  So now you just need to dive in and get to work, right?  If you want your business to succeed, you better have a plan In place for your cash flow.

One of the strengths that many small business owners possess is the ability to run with an idea and get it implemented.  You have a bias for action that keeps you moving and helps you accomplish things that people with ideas but no follow through cannot achieve.  But one of the reasons that so many small businesses fail is that they don’t properly anticipate their cash needs when they are in the start up phase.

There may be many factors that slow down the growth of your small business.  Perhaps natural optimism causes you to think that your business will take off more quickly than it does.  There may be factors in the market that turn just as you are getting your business going.  It could be the economy.  People stop spending money and your business suffers, even though you are doing everything “right”.  Sometimes you might underestimate how much time and energy it will take to get your business going and you just can’t get everything done as quickly as you thought you would.

No matter what the reason is, preparing a conservative start up budget can help you prepare for the extra time your business may need to gain momentum. 

Often we make jokes about how our accountant is always looking at things too small and too slow.  But remember accountants are helping you with your money.  The better they do their job of slowing you down and making you think through everything, the better off you will be.

Your accountant would like nothing better than for you not to need any extra time or money to get your business going.  They want you to succeed.  But from your standpoint, you will be very appreciative of the conservative budget approach either way.  If you succeed more quickly than the budget projection, you win in two ways.  Your business takes off and starts paying you for your idea and hard work.  As a bonus you have extra funds becoming available that you didn’t have to use to get your business going.  You can use that money for something else!

If the more conservative budget was necessary you will also be glad.  No matter the reason, the time you took to prepare that budget and properly fund your start up costs will have been time well spent.  It will help you cover the gap between what you wanted the business to do and what it actually took to get the business going.  You will still be in business because you had enough money to get yourself through.

By preparing and funding a great start up budget you will be ready to go either way.  Remember that just because you have a budget that is conservative does not mean that you can not aggressively get your business going.  You can challenge yourself to beat the budget while still being prepared if something happens to slow you down.

So listen to your accountant and Dan the Budget Man at Budgeting Essentials to do the work to prepare a great start up budget.  Then go out and blow it out of the water!  The sky is the limit for your success.  Have fun.  Be successful.  Make lots of money.  You win when you start the right way.  Budgets can be fun.  Budgets are also Business-Savers!

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At www.BudgetingEssentials.com we don't want you to miss out on making Your Business the Best it can be!

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God Bless your week!