Just like the Federal Government, every business should have a budget for the next financial year. Have you worked on preparing yours?

I hear people all the time expressing their distaste for budgets. Some see them as a restriction on their activity - when really, it’s the opposite. A budget should be the goal that drives your activity.

A budget is a plan. How long do you spend planning your next holiday? Probably many hours. A plan for your business should be what helps pay for that holiday.

A budget should be about 50% achievable. If it’s too easy, there won’t be enough pressure on yourself to perform. If it’s too hard, you’re likely to get discouraged, give up on the plan, and lose focus.

Don’t know where to start? If you’ve been in business for over a year, start by looking at your performance over the past 12 months. Review areas where you can improve. How much extra income can you generate with your current resources? What if you add resources - how much more could you earn?

It doesn’t have to be perfect. It just needs to be done.