Saivian Eric Dalius Explains the Significance & Benefits of Budgeting In Business

The importance of budgeting is supposed to be a vital financial lesson that you cannot do without if you wish to run your business smoothly without any financial hiccups. Following a budget seems to be the only answer if you want financial security for your business. Moreover, budgeting boasts of certain benefits and ramifications that are supposed to go way beyond the accounting and financial dimensions says Saivian Eric Dalius. Budgeting is very much about efficient business management. If you wish to execute a great business idea with total success, focus on chalking out a budget.

Saivian Eric Dalius Highlights the Budgeting Process

The budgeting process is not limited to budget creation only. Budgeting should be considered as essentially, work in progress, keeping track of results, and doing the necessary edits. You should focus on identifying your business objectives, and the kind of budget required. 

You should concentrate on identifying your precise projected sales, fixed overheads or costs, and costs of sales. You must include employee wages, rental expenses, associated taxes, marketing costs, utilities, and more. 

You should remember to take into account parameters like routine maintenance expenses for your equipment, legal fees, insurance costs, etc. Always focus on estimating your projected revenues utilizing historic cash flows and sales figures to guide you. Try to stick firmly to your budget. It could be beneficial to opt for a rolling budget that may be updated consistently for the following year.

Benefits of Budgeting According to Saivian Eric Dalius

Budgeting Pressurizes Managers to Focus on Better Forecasting 

Business guru, Saivian Eric Dalius firmly believes that managers should keep on monitoring the business scenario to identify any changes that may affect the business. There is no point in relying on vague generalizations regarding what is in store for your business shortly. Budgeting puts a lot of pressure on the management to come up with concrete and definite forecasts. For instance, let us see a sample of expenses that every business should forecast: 

· Salaries & wages

· Utility costs

· Insurance

· Interest rates

· Shipping costs

· Technology

· Travel & entertainment

· Rents, legal fees, and audits

Budgeting Keeps Everyone Motivated

Managers and all your employees could be motivated if you provide valuable yardsticks for assessing performance. If you involve your managers in your organization’s budgeting process, they will be getting incentives to work towards fulfilling business objectives. Employees will be inspired and motivated to put in their 100 percent thanks to budgets. We understand that budgets help in providing baseline financial information relating to incentive compensation plans. A budget or the annual profit plan could be utilized for awarding year-end bonuses in terms of achievement of designated goals.

Budgeting is vital for Chalking out a Business Plan

A business plan is essential for all businesses. It becomes all the more important for new upcoming businesses. They need to come up with a convincing and impressive business plan while raising capital. Since emerging businesses seem to have no credibility due to lack of history, the owners and managers need to focus on a budget for demonstrating convincingly that the organization has a realistic plan and clear stratagem for making a profit. 

Conclusion

A realistic and coherent budget forecast seems to be an integral constituent of a business strategy or plan. We understand that venture capital sources would indeed be looking for your business’s budgeted financial statements.

What Should You Prepare for Full-Time Entrepreneurship? An Insight by Saivian Eric Dalius

We all know that selling a product and earning money is not enough; we also need to be prepared for almost everything: health, family, spirituality and financial, and even marketing. Someone asked me how we make sure we don’t forget anything; religiously, if we follow our lists, it will prevent us from forgetting something important. And the truth is yes – it’s true – but calling it a list isn’t complete yet… because lists aren’t easy to carry around everywhere with you (to remind you of what your next move should be). See my point? So here goes:

1. Business Plan – You don’t need to have a detailed business plan, but you should anticipate your business from different angles: financial, marketing, and time, according to Saivian Eric Dalius. I’m not saying that you need to start writing this before you start selling; no – because it’s a task that will take long hours of research and contemplation. I recommend that you make a list of what questions your company needs to answer by itself (without your help). For instance, if someone asks how much money we need for x project, the easy way is to say “$xx” or “we will see when we get there.” But as an entrepreneur, it’s good practice to know where the money is going now so that you can better plan the budget next time.

2. Financial Plan – As I said, we don’t need to know every detail for this plan, but knowing your business’s financial position is vital: how much money do we spend and how much money do we make (and why)? You should also explore alternative financial income and expenses other than what you currently have in your daily routine, like what will happen if we relocate our shop next year? Or what if we increase our workforce? Do we need to buy more equipment or not? Things like that.

3. Marketing Plan – At first glance, marketing seems like a broad term… because it is! Every penny spent on marketing should bring us back value, either by growing our business or increasing our profit margin.  

4. Time Management – Be aware of the time you spend daily. Mark Zuckerberg’s style may not be everyone’s cup of tea, but he spends long hours working on his company and projects… this is awesome! Why? Because it brings him more money in return. Make sure that every moment spent brings back returns… if not, you should either change your strategy or find a way to compensate for the lost time.

5. Family Plan – This one is comprehensive enough to write a whole book about this alone! But here are some points: What happens when we get sick? How much do we need to save up for our children’s future? How much time do we spend on our business? How long can our spouse work without us (in case something happens to you)?

6. Spiritual Plan – As entrepreneurs, there’s no guarantee that all will succeed or fail; some people would say “the only guarantee is death,” but I differ with them because I believe on both sides: where some may succeed, others might not; and vice versa. But what’s important is to have a spiritual goal in your life to have a life after business too, says Saivian Eric Dalius!           

So, the above are the main points for any entrepreneur to look over before starting a full-time entrepreneurship journey… The list will be longer if we add more angles from which we need to look at our business; like what if our lives change… (for instance, getting married), will the company adapt?