Ch. 07:

Ch. 07:
Managing Business Budgets And Finances Together

Synopsis

For many businesses, being able to find a balance between these two seemingly similar elements can prove to be a rather uphill battle that eventually spills over into the actual business survival itself.

Putting It Together

Most businesses especially the smaller start-up ones, run into trouble soon after its operations begin, due to a variety of factors all of which revolves around finances.

For the enthusiastic business owner, the initial action of providing credit to customers may end up being a very poor business decision that will cost the business entity its future.

By this action, the intention is to entice the customer to make a commitment with the promise of eventual payment forthcoming. However, this style does not really help the business entity as a whole.

In order to start up the business, there may have been debts incurred which require the servicing of interest, thus without some incoming revenue immediately enjoyed, such debts will not be adequately serviced thus incurring the possibility of even further debts and this will eventually be the factor that falters the positive business growth.

To minimize this possibility, the business owner should have a strong budgeting and finance allowance in place where all possibilities have been explored and suitable actions have been designed to counter or address any of the possible anticipated problems. Elements such as credit control systems should be well planned and firmly in place to ensure the business engine is not compromised in any way. Using the initial finances all budgeting exercises should be done in an in-depth form so that additional finances are not needed nor encouraged.