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  • Writer's pictureDiana Miret

Question # 27: Budget or Forecast?

A budget is a license to spend; a forecast is your roadmap to profitability.

When I speak to my clients, the most common thing I hear is: "I need a budget." My response is always, "No, you don't. You need a business model and a forecast you are willing to act on."

Budgeting is one of those things that can make you keep your head down when you should actually need to keep your head up to see what is coming at you. Instead, spend 25% of your effort on looking at what happened and 75 % of your effort looking at numbers and thinking about what you want to MAKE happen.

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