DON’T BLOWYOUR 2018 Budget!
As you begin the year, you’re probably developing a new budget for your business. No matter how much you sell, there’s no quicker path to a cash shortage than bad budgeting.Victor Butcher, head of Butcher Financial Services, says a well-prepared budget serves as a road map for companies.“You need the road map to understand where you’re going with your business,” he says.With that in mind, here are a few tips to ensure you make the most accurate budget possible for 2018.
efforts in your downtime and keep profits coming in when you need them most. Similarly, you should limit unnecessary spending during the months when you expect revenue to be down. Make Realistic Projections Too many companies look at the future with rose-tinted glasses.“You never want to be in a position where you’re spending more than you have coming in,” says Annie Scranton, owner of Pace Public Relations. How do you end up in this quagmire? There’s no surer way than projecting huge growth without the data to back it up. Your sales forecast needs to be realistic, if not a little lean. After all, 20 percent extra in revenue is a bonus, but 20 percent under can be a catastrophe. Your Budget Isn’t One and Done So, you’ve finished a budget, but that doesn’t mean it will never change. At the very least, you should review your planning on a quarterly basis. Change is the only constant in the business world, and adaptability based on profit patterns is a key component of budgeting success.
Don’t Underestimate Expenses Whether you’re talking about internal projects, marketing initiatives, or client services, you should always assume you’ll encounter unexpected
costs. If you don’t leave wiggle room in your budget, you’ll have to borrow cash allocated to other endeavors.“Every project seems to have an extra cost that was never anticipated,” notes
Shufflrr CEO James Ontra. It’s much better to budget for these speed bumps than run out of gas before you reach the finish line. Account for Fluctuations Even if you don’t sell Christmas trees or pool toys, your business probably has a sales cycle. Assuming that your revenue and spending will be consistent throughout the year sets you up for failure.While making your budget, be sure to consider when you expect an off-season.This will allow you to focus on marketing
The Art of Saying No
Business owners can find it hard to say no. If you say no, you can be left with thoughts like “What if I miss out on an amazing opportunity?” or “Can’t I take on just one more project to hit my revenue goal this month?” However, saying no can be extremely empowering and good for your business. Steve Jobs, co-founder of Apple, once said, “People think focus means saying yes to the thing that you’ve got to focus on. But that’s not what it means at all. It means saying no to the hundred other good ideas that there are.You have to pick carefully. I am actually as proud of the things we haven’t done as the things I have done. Innovation is saying no to 1,000 things.” It can be tempting to jump at every new opportunity or challenge presented to you, especially when you are dedicated to growing
your business. However, there are certain instances in which saying no is completely necessary to the success of your business. Regardless of your niche, there is a saturation point at which you cannot take on more work. It happens when you are working long hours, when you rarely spend time with your family, and when your health and sleep habits are suffering. Suddenly, you don’t enjoy work anymore, and you are constantly stressed. When your work-life balance is slipping away, it’s time to say no. Your business serves a specific demographic. But what about when you get a new offer from a prospect who falls outside your normal arena? Ask yourself, does it conflict with my demographic? Do I have enough expertise to be able to do the job? Does it hurt the image I’m trying to create around my brand? If you
can say yes to these questions, say no to the prospect. It can be tempting to chase a new offer, but think long term about your business and stay true to your mission and goals. The secret to saying no is knowing not only when to say it, but when to say it right away. Saying no might mean you have to pass on one opportunity now, but it can open new doors for you later down the road. Be empowered by your ability to say no and use it to showcase the value of your work to others and yourself.
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