Living Entrepreneurship Blog / Babson Entrepreneurs

Business Budgeting Tips #5 Don’t Budget To The Exact Penny

Different business or company owners don’t bother using budgets to help them with meeting their different profit goals. Some don’t even have a profit goal and will settle with what they get. The reason for this is because the chief executives and the business owners figured that trying to learn how to make a workable budget method is just too annoying and hard and one big waste of time that they just don’t want to bother with it. In the end they just hope that they sell enough products or services to cover the bills and end them up with a profit after it all. Thinking like that can end your business.

Trying to budget to the last penny is not at all practical. This isn’t what you are trying to do and that would be taking budgeting to the extreme. You won’t miss any lost pennies and you should not be worrying about that, that much. Budgeting simply allows your employees to have a direction that they can use for any needed course corrections in detail when it matters. Focusing on the little details of the pennies will drive you insane, buddy.

Danny Wong knows the importance of budgeting, but not over budgeting to the point of insanity. He would have had to being as he manages a dress shirt startup as well as a second custom dress shirt startup and a website that is dedicated to custom products.