A whopping 80 percent of small businesses fail within the first five years, according to a recent Bloomberg study. The No. 1 reason why they couldn’t make it past that five-year mark? They ran out of capital, meaning they failed to budget properly.
A budget is more than just a list of costs and expenses — it’s a plan for your future. Sure, setting a budget helps you manage expenses, but it’ll also help you clearly identify areas where you want to see your business grow, while ultimately increasing profitability by optimizing cash flow. Profitability plus optimized cash flow equals sustainability.