He said, "90% of the small businesses he works with have never put together a budget."

That is what my friend Gordon Smith said over lunch last week. Gordy is a specialist consultant who works with small businesses with cash flow problems. He offers a quick diagnosis and fast strategy to fix the financial problems of his customers who are under the gun to make changes. "They have always wanted to do it, but never got around to it." Gordy added. He usually works with businesses with one to ten million dollars in sales.

They never made a budget. I am still amazed that some business owners choose to ignore the big picture of income and expense from an annual viewpoint. Budgets and cash flow projections just aren't that tough to do. If you can put together a spreadsheet on Microsoft Excel you can have the framework for a budget in a few hours.

If you are not familiar with creating an Excel or any other spreadsheet program on your computer then get someone to teach you or take a class in it. If computer keyboards bring the sweat of frustration to your brow, have one of your employees begin the process of creating the format.

Most of the challenge of budgets and cash flow work is in starting.

Have you used any of these excuses before to make your point about why you avoid starting a budget?

1. I'm just too busy with the day-to-day finances to spend time on a budget.
2. I know we aren't doing well and I don't need to be depressed even more with seeing the numbers in print.
3. My business is too complicated with variables to do a meaningful cash flow projection.

My counterpoints to your arguments:

1. The reason you are too busy with day-to-day finances is because of your subconscious decision to avoid looking at the big picture. If most days are a scramble to meet payroll, pay vendors and meet the mortgage payment, then a budget and cash flow will help you find solutions to the daily fire drill.
2. "Expecting different results from doing the same thing day after day is the definition of insanity.", as the saying goes. Facing the facts today will create the opportunity of time to put the solution in place before you run out of tomorrows.
3. Something is better than nothing. Your fixed expenses are predictable; your variable expenses are slightly predictable. Past experience will allow you to create several income scenarios. Putting it in a budget gives you a start and a plan to modify as time progresses. Remember, a W.A.G. (wild ass guess) is trumped by a S.W.A.G. (sophisticated wild ass guess).

For those of you in business without a budget and cash flow projection, No More Excuses! Make one.

For those of you in government with a budget, No More Excuses! Read it.

I help business owners to get control of the dollars in their businesses. Would you like to know more? click here

"Money talks. . . but all mine ever says is goodbye." -- anonymous

"Money is the barometer of a society's virtue." -- Ayn Rand

"Finance is the art of passing currency from hand to hand until it finally disappears." -- Robert W. Sarnoff

Most days, my life is filled with lots of activities resulting from the six children, the horses and growing a business. Lately, it's been overflowing with things to do.

Included in the overflow is the task of researching and buying a laptop computer for Elizabeth for her fall semester at college and researching the purchase of a laptop for my own use. ( I 've been very jealous of all of those laptop users wasting time in Starbucks and want to join them).

The research is going at the speed of dark. That's because I feel in the dark about what brands are reliable and comfortable to use.

I'm looking for your very brief opinion (good or bad) about your laptop. If you are just wasting time at Starbucks, how about a quick email? Thanks!

Thanks for reading. Please forward this newsletter to anyone that you think might enjoy it. The subscriber list continues to grow thanks to your efforts.

Newsletter topic ideas and comments are always welcome. Send me an e-note.

Life is short, ride hard.

Doug

I also write a weekly electronic newsletter for Professional Horsemen. If you are interested in the business world of horsemen, or have friends in the horse business,take a peek. I am spurring others on to help me promote this newsletter.