Do you find you fall into any of these excuses to NOT improve the coming year? Eve Blackall covers 4 common excuses and offers 5 easy financial budget planning steps –
- “I don’t know exactly what is going to happen next so how can I plan?” – it doesn’t matter; put down what you would LIKE to happen – the benefit is a very clear way for you to establish your measures of success for the year to come.
- “But my plans may change during the year!” – never mind; you can adjust your budget to reflect new goals or challenges – the benefit is you can also clearly see the impact and outcomes of these changes and when, where and how to make management decisions to stay on track.
- “What if I get it totally wrong to start with?” – all the better; the benefit is you will learn more about your business is actually doing, instead of acting on what you assumed your business was doing.
- “I don’t want to look foolish!” – go right ahead and keep your initial budgeting drafts private; if only for a while. Eventually you will want to follow best practice and create your budget and plans involving your team, and maybe even your customers and suppliers. Start by building your confidence and skills first and keep it close to your chest if you like (just make sure you still peek at it often), then no-one but you will can judge how well you are going.
Eve also has simplified the 5 key steps to make business budgeting easier –
STEP 1 – Gather your Budgeting Calculating Ingredients
STEP 2 – Write down your Future Plans
STEP 3 – Sort out your Future Plans into Budget Headings
STEP 4 – Apply the dollars to your Budget Headings
STEP 5 – Do a Profitability Check
It doesn’t have to be complicated, or maths-ey! Even if you only write down 5 lines – one for income and four lines of expenses – you are starting a budget you can work with… All you need to do after that is to check your progress towards the goals (preferably weekly) but monthly will do, you will probably surprise yourself with the improved business and profits that result from just keeping your eyes on the prize!
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