Budgeting Essentials: Why We Create Budgets
Coach Dan Dollevoet walks us through the less obvious value of budgeting, and why small budgets should make one even if they feel they have their finances in order.
A while back, I worked with a business owner who was convinced he needed to triple his revenue in the next 12 months. When I asked how he planned to do it, he shrugged and said, 鈥淚鈥檒l figure it out as I go.鈥
Sound familiar?
I get it鈥攂udgeting can feel like guesswork. Or worse, handcuffs. But that鈥檚 the wrong lens to look at it. A budget shouldn't be your ambition. It should clarify it. It should help you choose where you want to go, and build a roadmap to get there.
A Budget Turns a Dream Into a Strategy
Every successful business I鈥檝e worked with had one thing in common: they didn鈥檛 just dream big, they planned intentionally. A clear vision is important, but it鈥檚 not enough. You need a way to measure whether you鈥檙e actually achieving that vision.
A budget helps to connect these dots.
It Helps You Stay Honest
It鈥檚 easy to tell yourself everything鈥檚 going fine鈥攗ntil you look at the numbers.
One of the biggest mistakes I see is overestimating revenue and underestimating expenses. It鈥檚 tempting to pad the income side of your spreadsheet just to make everything look good on paper. But that only delays hard truths.
A real budget holds you accountable. It forces you to ask the tough questions:
- Is this revenue goal actually achievable?
- Do I have a strategy to get there?
- Can I afford to spend this much on growth?
When you build a budget, you鈥檙e聽 committing yourself to a specific path, one that you can be held accountable to, and it is that kind of honesty which helps drive better decisions.
It Puts You Back in Control
Running a business is unpredictable. Sales fluctuate. Clients disappear. Expenses come out of nowhere.
Without a budget, it鈥檚 easy to feel like your business is running you. But with one, you鈥檝e got your hands back on the wheel. You know what鈥檚 coming in, what鈥檚 going out, and what you can adjust when the unexpected hits.
Even when things change (and they will), you adjust. The power is in your hands.
It鈥檚 the Starting Point for Everything Else
Your budget is the blueprint for your business. It tells you when it鈥檚 time to invest, when it鈥檚 time to pull back, and how long your runway really is.
A good budget is how you protect your vision of the future. It鈥檚 how you make better decisions, faster, and how you make sure you're starting with a leg up.
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Dan has 25+ years of experience helping businesses improve and optimize their operations. He combines his financial analysis and planning expertise to solve problems and help clients increase profitability.
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