What example annual revenue target is mentioned?

Bob GauvreauAsk Bob Gauvreau Questions Based On His Training

Building a Budget for a Small Business #shorts

24 Jul 2023 · 1 min

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Bob Gauvreau explains why a budget is the single most important tool for small business finances. A budget sets your direction, gives you benchmarks to track progress, and translates revenue goals like $1,000,000 into the sales volume and price you actually need. Review it monthly.

Questions this video answers

One million dollars in a year.

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If I had to give advice for the number one tool that could support financial performance in a business and the success, it would be creating a budget for that business. Let me talk about what a budget really is as a small business. What a budget does is it helps us outline the direction and the destination of what we're trying to achieve. What we do with a small business is we establish the destination of where we're trying to head, and the budget gives us a framework and a benchmark for us to see if we're on the right path. For any small business, setting up a budget or some sort of pathway to know that you're on track to achieving your goals is very important in our small business. If we know that we're trying to get a million dollar year, this year in revenue, we need to understand the number of sales we have to make and the average sale price in order to get there. We need to look at this at least on a monthly basis in order to achieve that goal.