Good budget helps put focus on resources

Many owner-managers run their businesses without a planned goal. In trying to survive from week to week and from month to month, such ownermanagers overlook an important management tool - budgeting.

Would you ever consider going on a journey without determining

what supplies you might need, the mode of transportation or how to take care of things at home while you're away? Of course you wouldn't. Why then would you set off on one of your most important adventures, starting or managing your business, without a clear picture of what's ahead and what resources you'll need to get there?

Whether the plan is for next year, for the next three years, or for the next five years, budgeting can help just as a map helps you keep on the right road. Once you've developed your business plan, preparing the first budget is easy think of your budget as the "financial picture" of your future.

Because small business is not a outand-dried affair, the first budget you prepare often uncovers problems with your plan and helps you determine whether or not your financial goals are within reach. The budget will also help you focus and select from alternatives so that your plan is realistic and achievable.