Finances
BUDGET YOUR WAY TO SUCCESS
Aligning our Start Entrepreneuring concept of linking golf and business concepts, we’ve interviewed several accountants and auditing companies whose target clients are small and entrepreneurial businesses. Without fail almost everyone commented that one of the major pitfalls landing their clients in the rough and preventing them from moving forward and growing their business is not having clearly defined goals and linked to that, budgets. Reluctance to draw up budgets, thinking that it takes time away from running the day to day to bring in income almost always cost businesses the ability to grow sales and manage expenses.
Before any golf player walks onto the course and start playing, they have a good idea what the course looks like, which clubs they should have in their bag and mentally prepared to play for success. They will have a good idea of what input is required verses the cost of possible influences every aspect of the course and weather will have on the way they need to play their game.
The same is true for any business, entrepreneur or individual wanting to succeed at achieving their goals and becoming financially prosperous.
Budgets help create financial stability. When drawn up honestly and realistically, budgets become an extension of your goals, helping you to bridge the gap from where you are financially to where you want to be. Tracking expenses and following the plan, makes it easier to meet financial goals, pay bills on time, setting sales targets, build an emergency fund and save for major expenses such as expanding your asset base.
A well formulated budget is an indication that entrepreneurs are in control of their business and shows commitment to the business success. This is of great value when investment funding is required to grow the business.
A well planned budget provides structure, taking the guess and stress out of running a business. It allows the entrepreneur to fully focus attention on client relations, increasing sales, manage expenses and expanding their database. Budgeting your way to success requires a basic structure.
A basic budget consists of three important components.
The first being Projected Income. This includes:
• Capital Income which is the share capital or finance capital obtained from banks.
• Operational Income. All income from sales and operations are included under this heading.
• Investment Income includes interests and dividends received.
The second Component is Expenses which includes the following:
• Capital Expenses. This is the repayment of finance capital received.
• Operational Expenses which includes Cost of Sales and running expenses.
• Debt Payments include short term and long term debt repayments. Includes accounts payable
• Dividend payments is the investment returns paid to shareholders.
• Taxes due to Revenue Services
Expenses are deducted from projected income to give you the third component which is Profit.
Profit can be utilised in several ways. It can be channelled toward business expansion and used to buy business growth investments or assets. To fast track business success, profits can be used to make additional payments to pay off debts and loans.
Entrepreneurs with big goals and dreams will ideally re-invest profits into the business for future growth, using external investments to save for larger future expansion and buying large assets.
Business success often starts with a good basic plan which allows you to know where you are going and helping you to get there. A well planned budget allows businesses to focus on growing their business and plan for growth.
Before any golf player walks onto the course and start playing, they have a good idea what the course looks like, which clubs they should have in their bag and mentally prepared to play for success. They will have a good idea of what input is required verses the cost of possible influences every aspect of the course and weather will have on the way they need to play their game.
The same is true for any business, entrepreneur or individual wanting to succeed at achieving their goals and becoming financially prosperous.
Budgets help create financial stability. When drawn up honestly and realistically, budgets become an extension of your goals, helping you to bridge the gap from where you are financially to where you want to be. Tracking expenses and following the plan, makes it easier to meet financial goals, pay bills on time, setting sales targets, build an emergency fund and save for major expenses such as expanding your asset base.
A well formulated budget is an indication that entrepreneurs are in control of their business and shows commitment to the business success. This is of great value when investment funding is required to grow the business.
A well planned budget provides structure, taking the guess and stress out of running a business. It allows the entrepreneur to fully focus attention on client relations, increasing sales, manage expenses and expanding their database. Budgeting your way to success requires a basic structure.
A basic budget consists of three important components.
The first being Projected Income. This includes:
• Capital Income which is the share capital or finance capital obtained from banks.
• Operational Income. All income from sales and operations are included under this heading.
• Investment Income includes interests and dividends received.
The second Component is Expenses which includes the following:
• Capital Expenses. This is the repayment of finance capital received.
• Operational Expenses which includes Cost of Sales and running expenses.
• Debt Payments include short term and long term debt repayments. Includes accounts payable
• Dividend payments is the investment returns paid to shareholders.
• Taxes due to Revenue Services
Expenses are deducted from projected income to give you the third component which is Profit.
Profit can be utilised in several ways. It can be channelled toward business expansion and used to buy business growth investments or assets. To fast track business success, profits can be used to make additional payments to pay off debts and loans.
Entrepreneurs with big goals and dreams will ideally re-invest profits into the business for future growth, using external investments to save for larger future expansion and buying large assets.
Business success often starts with a good basic plan which allows you to know where you are going and helping you to get there. A well planned budget allows businesses to focus on growing their business and plan for growth.
