Always Follow a Stable Budget (Business Info)

(CREDITS):



--written by thewriter197

--employed by Ashford University





The difference between static budget and a flexible budget is stability. The static budget provides more stability because you know how much money your spending month to month. Static budget is also recommended by a business writer on chron.com. The writer reports, having a budget for a business that is stable and determined will let you know how much money you need to make month to month. Flexible budgets are good for people who have a good business. But, that business needs to be really good. The business needs to be producing enough profit to the point where the business can afford to derail from the budget at any time. If your business is not good, then I suggest you stick to the static budget. Don't pretend to do good business. If your business is not good, then you need to own up to it. Be honest with yourself and make some adjustments. The flexible budget might be good for a selling business that is doing good. Before the economy hit, I was making money on Amazon and spending money like candy. I do not do that anymore because my business has not been to good. I have to do research and make sure things go according to plan now. It's a rough adjustment but I have to make my business good again. My business is getting better but it is still not where it should be. Now, I will personally use the static budget. It will help keep my expenses low and make sure I can cover bills. But, once I start making more money I will still keep a static budget because making money is hard. Spending money is not that hard. I will keep a tight budget on my expenses and try to get my business in order. A company should always use a static budget you never know what is going to happen next. There has been a lot of changes in the economy in USA lately. I am pretty sure that UK is doing good. But, United States is not doing so good we focus too much on entertainment and that is a problem for everybody. Not everybody in the United States wants to be an actor. So, everybody needs to follow a static budget to make sure employees and bills are paid. I don't recommend a flexible budget at all. If you feel you should wait until June or whatever to buy something, then I suggest you do it. This world is unforgiving when you fail. Failure is not something you don't have time for in any business.







Reference:



http://smallbusiness.chron.com/static-vs-flexible-budgets-new-businesses-20879.html