Living Entrepreneurship Blog / Babson Entrepreneurs

Business Budgeting Tips #6 Only Tradeoff When Necessary

Different business or company owners don’t want to 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 they do this is because 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.

When it comes to making purchases for your business, you need to do the tradeoff system. This means that you need to trade one expense for another. No one has an endless supply of money. If you NEED to make a purchase without budgeting you need to drop another expense to compensate for this new one that you are going to be buying. If you do not have this will power to do this you will forever be over spending and drive your business further into the ground. You need to realize that not all things you invest in will add profit margin. So you need to tradeoff to keep your business alive.

Danny Wong makes tradeoffs when needed. He has the smarts when it comes to businesses, after all, he manages a dress shirt startup plus a second custom dress shirt startup as well as a website dedicated to all products that are custom made.