I’ve had many to inquire of why budgeting is so important for the entrepreneur? I’ve especially seen these inquiries from solopreneurs or small businesses of one or two people. Let me just say first that having a budget is one of the key components to a successful business no matter the size. How do you know where you’re going, if you don’t have a plan for getting there? How do you know how well your business is progressing or not, if you don’t have something to measure your performance against? Simply put, a budget is a financial plan and helps you to manage the future income and expenses of your business. It reflects the goals & objectives of your business combined with how you believe your resources will be used. However, it doesn’t stop there, a budget serves as the roadmap for your business. It aids in providing a compass for making important business decisions in a more efficient manner to ensure that your business is heading in the right direction. A budget also empowers you to think more about the future and anticipate what could possibly happen in your business, which in turn makes for effective management.