There are three major reasons why CEOs should work with a budget:
1. Maintain a cash burn rate and ensure that the company has enough cash to reach the next milestone.
2. Working with a budget necessitates that the company’s entire management backbone plans and executes control based on the planning. This ensures careful future planning and assists the CEO in prioritizing what is needed and when.
3. It’s a great way to keep in touch with investors. The fact that the CEO works with a budget and understands how to keep a cash burn rate within the parameters of the budget helps to establish investor trust.
If you need help with your budget, we’re certainly here to help.