Creating a budget prompts business owner to look for savings

02/12/2013 | New York Times (tiered subscription model), The

Paul Downs founded Paul Downs Cabinetmakers in 1986 but only recently made a budget for the year ahead. Downs used a spreadsheet to create his 2013 budget based on his past expenditures, and he discovered that he would have just $54,000 left over at the end of the year. "It wouldn't take much of a revenue shortfall or unexpected expense to wipe it out entirely," he writes. That prompted him to look for opportunities to cut costs, such as by reducing the amount he spends on materials.

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