Wednesday, 10 November 2010

Budgets and Business Building

Author: Robert Wayne Harris

Job Vacancy - A budget is critical to building a business. Business owners will tell you that bankers and lenders need a budget. Bankers insist on it, investors want it and business partners won't back the new business owner without it. - Job Indonesia

It makes perfectly good sense since the operation of a start-up business has no track record to draw from to show performance or profit. The risks involved are enormous and the statistics for failure is high. Over 80% of all businesses fail in the first 5 years. Those statistics scare most investors away and bankers carefully examine these risks.

The mistake new business owners most often make is failing to plan for failure or slow months when little or no money is available to pay their bills. This results in financial trouble almost before they complete their first year. Depending on their chosen business venture and their start-up time, a retailer for example will rely heavily on Christmas and other celebratory times of the year to move a substantial amount of inventory. When sales drop, the financial fallout can close the business down if not properly funded.

Proper budgeting and funding is relied upon in these instances to carry the business through. This is why banks and financial partners are careful in financing new businesses and especially new inexperienced business owners. The failure rate is high and no one wants to be burdened with a failed business and accompanying expenses.

Proper funding and budgeting is mandatory to the success of any business...especially when your inexperienced. Proper funding minimizes your worries and maximizes your potential for success. - Lowongan Kerja

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