“We didn’t actually overspend our budget. The allocation simply fell short of the expenditure.” – Keith Davis

Finance is hard, it’s not fun and nobody likes it.  And until you start generating cash, there’s no way you’ll be correct in your projections.  So why do it?

Because of yesterday’s quote; it’s not the plan, it’s the planning.  Going through your financial planning exercises is one of the most revealing activities you can do.  It reveals what you really know about your business. It forces you to think about pricing.  It shows what you know about your market size and growth trend.  On the cost side, it let’s you know how much money you are going to need to raise and what your burn rate is.

Knowing your value proposition and your market segments are vital but financial planning will answer if you are going to have a business.

Get help and spend the time.

Blogging Gazzelle is published daily by Shawn Carson

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