The Analysis of Garys Hart Business Plan Assignment - 1

The Analysis of Garys Hart Business Plan - Assignment Example From information acquired, there are various benefits attached with budgeting or drawing a budget before starting a business organization. First, budgeting organizes business finances available. Drawing a budget helps highlight early warning signals for potential financial crisis likely to occur in carrying on with the business (Bernard 2002, p250). For instance, with a budget, Gary will have guidelines for paying bills and immediate alerts in case there occurs overspendings. Setting up a budget is also a way of opening up communication between Gary and his employees, especially those who will be working in the finance department. This ensures both the entrepreneur and employees are working towards a common goal that keeps them focused. It also involves all employees by teaching them to be responsible and holding on to accountability. This is because the owner already has the estimation of the outcome to expect and any adverse result calls for explanation and accountability form the person in charge. Drawing a budget before starting up a business offers one an opportunity for Gary to make informed decision on spending at any given time. Since Gary will be in a position to determine where his financial stand is, budgeting offers him with chances to take advantage of prospects that he may miss if he had not drawn any budget. With a budget, an entrepreneur will never have to guess since form the beginning, he will have definite knowledge whether he has start up finances or not. It is with the help of a budget that an entrepreneur focuses on financial goals of an organization (Steven, Roby & Gregory 2009, p329). A budget helps one come up with definite objectives that one should focus on. Budgets are usually drawn with the entrepreneur’s motivations in mind. For this case, Gary may be motivated by the fact that he wants to start and run a successful restaurant in the region. Preparing a budget saves time when one is dealing with some transactions. The time s aved can be used in dealing with other transactions.