Just like the Federal Government, every business should have a budget for the next financial year.  Have you worked on preparing your budget?  I hear people all the time expressing their distaste for budgets.  Some people see it as some sort of restriction of their activity when really it’s the opposite.  It should be the goal to drive your activity.

A budget is a plan.  How long do you spend planning for your next holiday?  Many hours.  A plan for your business should be worked on to help pay for your next holiday.  A budget should be about 50% achievable.  If it’s too easy, you will not have enough pressure on yourself to achieve.  If it’s too hard, you are likely to get discouraged and give up on your plan and lose focus.

Don’t know where to start?  If you have been in business for over a year, have a look at your performance in the last 12 months.  Review areas where you can improve.  How much extra income can you earn with your current resources?  What if you add resources, how much more can you earn?  It doesn’t have to be perfect, it just needs to be done.