I’ve had many to inquire of why budgeting is so important for the entrepreneur? I’ve especially seen these inquiries from solopreneurs or small businesses of one or two people. Let me just say first that having a budget is one of the key components to a successful business no matter the size. How do you know where you’re going, if you don’t have a plan for getting there? How do you know how well your business is progressing or not if you don’t have something to measure your performance against?
Why Budgeting Is So Important
Simply put, a budget is a financial plan and helps you to manage the future income and expenses of your business. It reflects the goals & objectives of your business combined with how you believe your resources will be used. However, it doesn’t stop there, a budget serves as the roadmap for your business. It aids in providing a compass for making important business decisions in a more efficient manner to ensure that your business is heading in the right direction. A budget also empowers you to think more about the future and anticipate what could possibly happen in your business, which in turn makes for effective management.
Here are other reasons why I believe budgeting is important to the success of any business:
- Provides insight into your business and sheds light on if your business is financially on the right path.
- Creates a performance measurement mechanism in which you are able to understand what your business is doing compared to what you thought or planned.
- A budget shows that you are a serious entrepreneur which makes your business attractive to potential investors and is a critical component in getting funding from a bank.
- Acts as a management tool for running your business on a daily basis.
- You are able to make adjustments early once you realize that your business may not be reaching its planned goals.
- Due to a budget being a forward thinking document, it serves as a planning tool for future growth.
- Produces discipline in that as an entrepreneur you are more aware of your expenditures and more careful to manage costs in order to ensure that you reach your established goals.
I thought this valuable to share because budgeting is important for any entrepreneur in their business.
I think congratulations are in order! You have decided to take control of your own future by starting your own home business opportunity in Network Marketing. So what now? You want to start earning those BIG commissions you read about on your companies website, but how are you going to achieve that?
After the initial training and going through a list of names, many new network marketing entrepreneurs make a big mistake. They spend a lot of money on MLM / Home business leads because they are desperate to build their business. They don’t always work through their list, but do this without considering the consequences to their budget and their fragile new home business.
It can be said that this is the “nature of the beast”. It’s obvious that people get excited about their new money making business venture. They don’t consider the consequences because all they actually think about is earning the BIG money as soon as they get a few people into their team making sales and money themselves.
The idea seems really simple! Spend some money on “quality” home business leads, give them a friendly phone call to tell them about your amazing opportunity and BAM!! Instant sign ups into your new business!
If only it were that easy! The failure rate in the network marketing industry wouldn’t be 90%! The fact is, most people bleed their budgets dry before they even get started!
The thing is, any home business leads service won’t tell you this when you visit their website. They will have a disclaimer in the small print, but unless you curb your enthusiasm past the persuasive sales talk, you won’t realize it. All you see is how you need to get the freshest, most qualified (and expensive) leads possible, which they supply to you, so you can grow your business fast.
Things To Think About Before Buying Home Business Leads
It’s best to ask yourself some pertinent and relevant questions before you even consider buying leads:
- Have you ever done recruiting on the phone before?
- Have any previous experience in direct sales?
- Do you have a strategy when you get a prospect on the phone?
- What are you going to say to a prospect? Do you have a proven and effective script you have practiced so they don’t think you’re “just another nuisance caller”?
- Will you have enough leads to talk to to get some results? You should ensure you can stack the odds in your favour with enough numbers.
Any network marketing business needs fresh new leads daily, but the best way to get these leads is to spend LESS money and get MORE leads. It’s important to understand that MLM lead recruiting is a numbers game, not one of who filled in a form with the most information that qualifies them.
The thing to do is to focus on becoming a better marketer. This will help you to get a better return on your investment that will keep you in business for the long term and at the same time getting the leads and the resources to grow as a home business entrepreneur. Invest in your education and find out ways to get the best training and ways to fund your business so it starts on the right footing.
It’s important to keep your overheads down, so buying home business leads can be a bad idea. Invest in the things that bring you a return and give the education you need to convert leads you do get.