The budget: why your small business needs one too

Many small business owners think budgets are only for big companies. In reality, a small business is more exposed to any sudden cash shortage.

What does a budget give you?

• An early view of the months when you'll need extra cash.
• Clear spending limits for each item.
• A monthly comparison between what you planned and what actually happened.

How do you start?

1. 1Gather last year's revenue and expenses, month by month.
2. 2Adjust them for what you expect this year: prices, staff, expansion.
3. 3Review it every month and update the forecasts when needed.