Eighty-two percent of all businesses fail because of poor money management. Given this number, ensuring effective money management should be a priority for any small business looking to thrive and succeed in today’s economic environment. And having a thought-out and executable budget is necessary to running a business that can withstand common financial roadblocks.

Budgeting can help your business become financially sustainable by helping you:

• Prepare for the unexpected. Emergencies happen in both life and business. A sustainable budget helps you save and set aside funds for emergencies, so that when the time comes to crack into your account, you’ll be ready.
• Set goals. You need to know where your company is headed and what the future may bring. A budget gives you that direction by helping you set expectations and meet your financial goals.
• Make better decisions. Without knowledge of the facts, making tactful, informed spending decisions becomes a challenge. Your budget gives a complete view of your income and expenses in one comprehensive spreadsheet in order to help you make financial decisions objectively.

If you’re unsure about creating a budget, put your nerves aside. MyTana outlined four steps to springboard the process. And MyTana’s hourly rate calculator can help with determining expenses and income goals.

Business owners get so tied up on their day-to-day routine that taking time to assess the broader financial health of the company falls by the wayside. But the sooner you start, the sooner you can begin to understand your business and plan for the future.

Learn more about Budgeting for Plumbers and Drain Cleaners