If you want to foolproof your budget , Epipheo has a video to show you a very simple method. Better yet, this is a perfect way to teach younger less experienced entrepreneurs how to think with discipline.
Epipheo shows you how a little something called the Envelope System can help you make sure you always have money for the things you need.
Too simple? It works. It works for personal and for business.
The principle of spending only what you have offers the same advantages when looking at the profit and loss report in your business. This is done by creating your profit & loss report prior to the period.
For instance, January has 10 days remaining. In essence it is over. Most of what will happen has already been planned and you are executing the plan for 10 more days.
Based on what you know, can you create the profit and loss report for February today? Sales and costs should already be known. Write the checks today and date them on the date they will be mailed/paid. By pre-writing the checks, you are pre-designating the moneys in advance just like the cash in the envelope system.
Time is even more precious than cash and the discipline to control the calendar wavers as human nature is more emotional than logical. The power of a simple allocation system can be used on the calendar as well.
Making the best decisons at the right time can't be based on guess work nor can business success be expected if the day is full of trial and error. Harnessing the money and the calendar is 90% can be the magic you need.
Think of everyone you know that you consider a success. Does it appear they have a system to controil cash? Do they appear to be in control of their calendar or a victim of random events?