Budgets are very important.  I think without proper budgets, entrepreneurs cannot adequately or effectively plan for the future.  I learned about the law of scarcity in economics a long time ago, and how there is always a limited supply of everything.  You will never have an unlimited supply of money, resources, or assets for your business, and understanding how to maximize your resources with that you have is important so that you don’t waste time or money within your business.   Understanding those limitations and knowing how to navigate through them, will help entrepreneurs see the big picture and make better decisions regarding the future direction of the business, and meet some of those long-term goals that they have set out for themselves. It also will help alleviate potential issues regarding which areas may need a little more monetary attention than another.   Without budgets, there will be a lot of chaos and confusion within the business.  If you have multiple employees, there may be some miscommunication regarding how much money there is available to acquire necessary items, and sometimes may get purchased for an area that in all actuality didn’t even need it.  To me, budgets is one of those first fundamentals that you have to understand as an entrepreneur, because it is literally intertwined throughout the entire organization.