In partnership with
Why Budgeting Feels Hard (And How to Make It Work for Your Business)
Budgeting is one of the most requested topics inside The Profit Platoon for a reason. Many business owners either avoid it entirely or create a budget once a year and never look at it again. The problem is not that budgeting does not work. The problem is that most budgets are built the wrong way.
A good business budget is not about restriction. It is about clarity. It gives you a plan for how cash should move so you are not guessing month to month.
Here’s how to approach budgeting in a way that actually helps.
Start with reality, not goals
Your budget should be based on what the business actually did, not what you hope it will do. Use the last 6–12 months of revenue and expenses as your baseline. Optimism belongs in strategy, not in the budget.Separate fixed costs from variable costs
Fixed costs like rent, payroll, insurance, and software must be covered no matter what. Variable costs move with sales and activity. Knowing the difference tells you where you have flexibility when cash gets tight.Budget for cash timing, not just totals
A budget that ignores timing creates surprises. Revenue may be earned in one month but collected later. Expenses may hit before cash arrives. Aligning inflows and outflows protects liquidity.Build margin into the plan
Revenue alone does not keep a business alive. Your budget should intentionally protect gross margin and operating margin. If margins are thin on paper, they will be worse in real life.Review and adjust monthly
A budget is a living tool. Compare actual results to the plan every month. Adjust quickly when something drifts instead of waiting until the year is over.
AI-native CRM
“When I first opened Attio, I instantly got the feeling this was the next generation of CRM.”
— Margaret Shen, Head of GTM at Modal
Attio is the AI-native CRM for modern teams. With automatic enrichment, call intelligence, AI agents, flexible workflows and more, Attio works for any business and only takes minutes to set up.
Join industry leaders like Granola, Taskrabbit, Flatfile and more.
Budgeting does not have to be complicated. When done right, it becomes one of the most powerful tools a business owner has to control cash flow, guide decisions, and reduce stress.
Inside The Profit Platoon, we spend time breaking budgeting down into simple, practical steps so business owners can apply it immediately. And for those who want hands-on support, Guernsey Consulting helps build and manage budgets that actually reflect how the business operates.
If budgeting has felt confusing or ineffective in the past, you are not alone. The goal is not perfection, but better control.
Sponsoring the Cash Flow Chronicles today is ROKU!
Thank you for supporting our newsletter. Each time a reader engages with our sponsor’s ad, this directly supports CFC’s mission to be the TOP FINANCIAL newsletter Beehiiv has to offer.
Even if you do not buy a product, subscribe, etc. this greatly supports our mission. Take 5 seconds today and check them out!
Shoppers are adding to cart for the holidays
Over the next year, Roku predicts that 100% of the streaming audience will see ads. For growth marketers in 2026, CTV will remain an important “safe space” as AI creates widespread disruption in the search and social channels. Plus, easier access to self-serve CTV ad buying tools and targeting options will lead to a surge in locally-targeted streaming campaigns.
Read our guide to find out why growth marketers should make sure CTV is part of their 2026 media mix.
Veteran business owner? Take command of your cash flow and tighten your financial systems. Join The Profit Platoon — a community built for Veterans.
