Budgets: The most important step in financial planning is developing a budget. You can compare the use of a budget to the use of a road map when you are traveling to an unfamiliar place. A budget identifies to you and your business where you are going. As the owner, you can better see how the business is running by comparing the business' financial performance to the budget and make corrections if necessary.
A business budget has the same goals as a personal or family budget. You want to determine the sources and amounts of income, identify the types of expenses and predict their costs, to determine how income will be spread out to cover those expenses, and to reward investors if there is a profit.
Please comment on this blog: what do you think are the most important personal and family budget categories for most people? How might they differ from a business budget?
