Why Do I Need to Prepare a Business Budget? What is the Purpose of a Budget?
Why Do I Need to Prepare a Business Budget? What is the Purpose of a Budget?Answer: Preparing a Budget In the midst of starting and running your business, you may wonder why you need to stop and put together a budget. A properly prepared and updated business budget serves several purposes: Plan Start-up Needs for Your Business Plan The first purpose of a budget is to help you gather information for your business plan, including all the items and expenses necessary for start-up. You need to know what it will cost you to open your doors the first day of your business. This includes inventory, furniture and fixtures, computers and software, and, of course, the costs of finding and securing a location for your business. Work with a Lender You will probably need to borrow money from a lender or from family and friends for start-up. A budget
