Think of the things you would like to purchase in the next 6 months, createa list of items. Indicate how much these items cost. How would you like to pay for these items. If the items are very expensive, you need to decide whether you really need them and if you need them, how will you be able to pay for them. The concept of setting up a budget to be able to pay for items by either borrowing or saving ahead is an important one for a business owner. For example, if the business would like to expand in the future, they need to be preparing for that expansion.

Find asset/financial needs using a pro forma balance sheet. Make a list of the items you own and what you owe. List such assets as a car, your textbooks, etc. You may owe a loan on your car and a loan for your tuition. Compare these to assets and liabilities for a business.