Budgets and budgeting is normally associated with the big multinationals. How many times have we heard a friend complain "...oh...it's budget time at work..."

Budgets, executed correctly, can be a vital tool in any business no matter how big or small. Why?

1. A budget is a guide that tells you whether you're business is going in the direction you want to be headed in financially. You may have goals for your business but if you don't set up guidelines for reaching them and you don't measure your progress, you may end up going so far in the wrong direction you can never make it back. Do you know what direction your business is going in?
2. A budget helps you to prioritize the important issues in your business.
3. A budget lets you control your money instead of your money controlling you.
4. A budget for budget working capital budget can, free up spare cash so you can use your cash to reinvest in the business without borrowing more!
5. A budget helps you prepare for emergencies or large or unanticipated costs that might otherwise knock you for a loop financially.
6. A good budget is not just a spending plan; it's a communication tool. Done right, a budget can focus your staff and work towards common goals.
7. A budget reveals areas where you're spending too much money so you can refocus on your most important goals.
8. A budget can keep the bank manager away or you get out of debt.
9. A budget actually creates extra money for you to do use on things that matter to your business
10. A budget helps you sleep better at night because you don't lie awake worrying about how you're going to make ends meet