Budget or Bust!

a guest post by Tisha Kulak

(www.bizchicksrule.com) — Imagine having a new business, one that you have been fortunate to grow in 12 months’ time, only to have it go broke in even less time. While this scenario may happen for many reasons, there is an increase in the amount of self-owned businesses that go bust because of a lack of proper budget.

All too often business owners who are not making the profits they had hoped for, make the mistake of spending on credit cards they can not afford to pay for at the end of each month. Many owners resort to refinancing property but fail to use the money wisely. There have even been several business owners who have recklessly spent profits from their business for personal reasons.

Managing a business requires a lot of effort and organization on any owner’s part. Without keeping a good eye on finances at all times, owners could be in for a big surprise, especially when relying on someone else to deal with the information. Owners need to know exactly where their finances stand in order to make informed decisions about how and when to spend money.

Owners who go out and buy fancy office supplies just because they want to have them are on a road to self-destruction and are not likely to grow their business very far. Owning a business does take a bit of sacrifice and above all an owner’s priority should be understanding the financials and where the money is going. It is not much different than dealing with personal finances. However, when it comes to business finances, oftentimes there are other people affected by how a business is managed. Employees surely would not be pleased to learn their payroll checks will not clear the bank because a credit card payment was too high this month.

Owning a business requires dedication, patience and good financial judgment. There are responsibilities involved in owning a business that must be dealt with on a consistent basis, such as remaining progressive about getting new work, making a profit, remaining diligent about finances and bookkeeping, and understanding that business funds are not necessarily a free-for-all for owners. Using and protecting business credit cards is also an important part of that responsibility. Being able to budget the company funds, paying bills on time, and assuring that monthly expenses can be met every month is a key part of business ownership.

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Tisha Kulak is a writer for Creditorweb.com, where she writes about business credit cards and responsible credit card use. She is a full time freelance writer and marketing consultant for small businesses and entrepreneurs. She is the owner of www.thehelpyhelper.com, co-owner of www.ReliableWriters.com, and co-writer on www.empoweringmom.blogspot.com. Specializing in e-books, web content and article writing, Tisha often works as a guest blogger on various sites and is an assistant editor of www.americanconsumernews.com. Married with a 6-year-old daughter, Tisha also finds time to work on novels of fiction and has co-authored an e-book with Debbie Dragon, titled “The How’s and Why’s of Hiring A Freelance Writer” available on Clickbank.com. Her last Biz Chicks Rule guest post is Thinking About Financing Your Business On Credit?.

(image: SXC.hu)

Tags: womens business blog, women, woman, business, budget, credit, finances, decision, spending, bookkeeping, accounting, kristen king, biz chicks rule