Three Reasons You Must Set A Budget

Small business owners often experience financial tensions, increased competition, and unstable revenues. To remain successful, small business owners must control spending and be cognizant with their accounts receivable. Successful business owners recognize the importance of creating, and using, and annual budget yet most business owners don’t create a budget and struggle. These business owners don’t create a budget because either they don’t know how or don’t think it is worth it. The successful business owners know a formal budget ensures resources are available and supports business growth, here are three more reasons every owner should have a budget.

( Do You Need Help with your Budget? Click Here for our upcoming webinar! )

A budget estimates expenses and revenues, restricting spending that is not part of the budget plan. Knowing the projected revenues allows the business owner to set targets for the business to achieve.

Example: When a small business budget dictates a need for $10,000 revenue in a month, the owner will know exactly how many visits, and new patients, are needed to make budget. This allows for the owner to set targets to achieve.

A budget controls spending by setting boundaries on what is spent and how it is spent. A budget will set targets of projected revenues, and allow you to target projected patient visits. Know if you hit these targets allows you to know if you can spend more money. A good budget provides a guide to what know how you will be able to support your growth strategies and plan.

A budget provides a profit margin that allows the owner to reinvest the money back in the business. When you budget in a strong profit margin it further helps secure a successful practice.  This profit will allow you, the owner, to hire more staff to allow YOU to take a well-earned vacation!

Without a solid budget, you are walking through darkness; with a solid budget in place there will be light, and clarity, on your future success! Do you need help with your budget?  Click Here to sign up for our upcoming Budget Webinar. As part of this, you will receive a FREE budget planning sheet allowing you to determine your projected revenues, projected profit, and a blue print for growth!  As an added BONUS, a FREE 30-minute call to help solidify your budget.

Andrew Vertson, PT, DPT, ATC
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