Because budgeting is such a large and important part of business operations, failing to do so correctly can have negative results, including:
- Not having an emergency fund
- An inability to expand operations or expand into a new market
- Not being able to secure investment dollars
- Potentially shutting down the company because it can not get out of debt
- Not making long-term commitments to customers, clients, vendors or suppliers, thereby straining business relationships
- An inability to secure loans or to make a large purchase that’s necessary for the business