BUSINESS BUDGETING FOR 2021 You Can Still Plan Around Unpredictability This is the time of year when businesses would usually be looking at their budget and planning for the coming year. But COVID-19 has made the future entirely unpredictable, which makes properly planning your budget difficult. But all is not lost — there are some basic budgeting tactics you can implement to face 2021 with confidence. Create a Forecast If you’re not entirely confident in your ability to forecast sales for 2021, you’re not alone. But you do still have options. If 2020 went great, perhaps try setting your sights up 10% from last year. If you want to play it safe, keep your forecast on par with 2020. If even that doesn’t feel reliable, then jump back to 2019 and use it as a base for creating your budget. You can ramp up 10% or 20% from there. Don’t just forecast this year blindly — use data from a point you can rely on and plan accordingly from there. KnowWhat to Include Your budget needs to have flexible sales goals and realistic expense plans this year. Many businesses are having to change their marketing focus and invest differently, so you have to be willing to adapt your budget too. As you set sales goals, be aware of your margins and get flexible with the way you’re achieving them if you want to improve them. Also take into account new expenses you may have in response to 2020, like staffing changes and Paycheck Protection Program loans. Take stock of what’s new and different for your business this year and include it in your budget plan. Remember the Essentials Even though last year was a wild ride, you can’t throw all your best practices out the window. Certain budget-forward thinking will always be essential, no matter where your business has landed. If sales are strong, drive profits while you can to build your reserves. Modify your products or services to align with customer behavior. Keep your accounts receivable clean. Don’t use credit cards to finance your business. Pay close attention to your balance sheet to keep a handle on debt. Cultivate an ongoing relationship with your banker. If you find a reliable baseline, are willing to be flexible and realistic, and if you can recalibrate your plans on the go, you can budget your way to a much better year.
At Risk Services of Arkansas, we’re in the business of making it easier for our clients to take the risks necessary to complete their projects. That said, risks can be more than just something to avoid or mitigate — they can also be opportunities to grow personally. Here are five risks that everyone should take, rather than avoid. Stand up for your beliefs. It’s easy to believe in something when everyone else agrees with you. However, when sticking to what you believe means disagreeing with everyone else in the room, it can be a lot harder. When you make your contrary voice heard, however, you have something much more important than approval — you have integrity. Face down your fears. Fear can be a motivator for bad decisions or a force that keeps us from making the right decisions. In either case, we often have to face our fears to accomplish our goals. That’s why instead of avoiding the things that scare us, the best course of action is to face them down. Follow your passion instead of a paycheck. Wanting to have enough money to provide for yourself and your family isn’t a bad thing, but if you base your entire career around making money, it will never lead to a fulfilling life. Find the things you’re passionate about and then find out how you can use those passions to provide for the people you love. Give to great causes. It may seem risky to give away some of the money that you feel like you worked really hard for. But, just on the other side of that risk is a lot of satisfaction that comes from giving to something bigger than yourself. Speak hard truths to loved ones. When you really love someone, you want what’s best for them — even if “what’s best for them” is contrary to what they believe is best for them. When you do have hard conversations with your loved ones though, always remember to do so with love and compassion instead of anger and pride.
2 • www.INSURICA.com • Specialized Insurance Programs for Specialized Industries.
Made with FlippingBook - Online magazine maker