I don’t mean the boring, constraining, suck-the-life-out-of-your-business sort of budget, where you stick 3% on last year’s actuals and spend all year saying “we can’t do that, it’s not in the budget”.
I mean an inspiring and exciting budget, where you map out what you want from your life and business over the coming months.
The sort that can change your life.
I don’t know about you, but I can’t quite comprehend that summer is almost over and the dreaded emails about Christmas parties have already started. Before we know it, the next 4 months will have flown by, and I want to make sure when I reflect at the end of this year that I’ve really moved my business on and I’m where I want to be.
So having a budget that is set around your goals and plans for not only your business but your personal life is just so important. Having goals that really mean something to you, that have a massive reason why you need to achieve them, are the only ones that will keep you motivated long term.
1) Through creating and setting the budget you’ll go through the thinking process; what do you want, why do you want it, and how will get you there.
2) This gives you a real feeling of clarity, of knowing and seeing exactly where you’re heading.
3) Every day you make decisions that take you in one direction or another; without a pre-determined route map you’ll never know where you’re going to end up. A strong vision means better decisions.
4) By having a budget you’ll already know if your finances stack up for the year, or if there are any pinch points you need to plan for.
5) Having a budget means you’ve got a monthly checkpoint – a yardstick that’ll tell you if you’re on track to hit those targets. If you’re not, you can find out what’s not working and make changes.
6) Use the targets to engage everyone in your company – get them all pulling the same direction.
7) Everything that’s going right or wrong in your business will show up in the financials; having something to compare them to will pinpoint problems quicker so you can take action straight away.
Even if you’re part way through your year it’s never too late to set new budgets. We call these forecasts; where you include your actuals so far, and plan for the rest of the year.
Remember, the past does not equal the future. It’s never too late to create the future you want.