How so? The next best thing to looking for funds is saving money. Before venturing off to lending institution why not brain storm ideas that will help you save money. For instance, can you cut back on amount of print and copy paper you're using? Can you reduce travel expenses?

Before making any additional major purchases consider fact that less equipment you buy less servicing you'll have to pay for. Do you really need that updated laptop, monitor, telephone system, etc? Can you cut down on shipping costs, Long distance calls and employee perks? If your equipment leasing contract is up for renewal can you find a better deal?

The time is ripe for refinancing. If you have a number of business loans and credit card debt considering refinancing to a lower rate. Can you refinance company car as well as your personal and family vehicles?

While you're at it have you thought about refinancing your home? True, home loan refinancing wave has definitely passed us by. Refinancing applications recently fell over 70 percent lower than in last week of May 2003. Still home refinancing demand is strong as 29% of homeowners have not yet refinanced.

The budgeting process usually begins with collection of accounting data. In order to prepare a strong and achievable budget, you must analyze each item of income and expense from prior year. If your accounting system is a mess and figures are inaccurate, numbers used in your budget will be useless. This is why it is so important to keep good records. Quicken and Quickbooks are excellent programs to help you with setting up an accounting system that is easy to use and understand.

If you can review your prior year’s figures with confidence, try to cultivate your strong areas and look for ways to increase performance or volume. For example, if one particular product sold well, take a closer look at that product. What you did to market it, etc. and try to model your other products in same vein to accomplish same results.

You also need to analyze your weak spots. If possible, set up some type of internal control over weak areas. A cost analysis will help you determine if you are actually making money on sale of a certain product. This is a big problem with new business owners. They don’t do research or due diligence in determining need for their product. In effect, they spend a great deal of time and money with a product that is never even going to break even. You cannot get emotionally tied to your product. If it is not selling, let it go and move on to what is selling.

If your business is in its first year, your budget will involve a little more homework. Keep in mind that a budget is an expression of your goals. Try to determine number of billable hours you might reasonably expect to charge for within a year’s time. If you are in sales, try to establish number of items you will be able to sell. After determining revenue portion, you should look to your expenses.