Budgeting: The Financial Planning Wheel

Managing finances in the small enterprise, whether for a business or nonprofit entity, requires some basic to-do’s. The to-do’s are related to each other and cycle continuously.

1. Determine the current financial situation
2. Develop your financial goals
3. Identify alternative courses of action
4. Evaluate the alternatives in terms of life situation, personal values, and assess their risks and opportunity costs.
5. Create and implement your financial plan
6. Review and revise your plan, adapting to changes in the situation.