Hey, it's time to draft your company budget for 2015!
But...before you put pen to paper, it’s important to understand the value of a properly constructed and prepared budget for the upcoming fiscal year.
A properly constructed budget helps prepare your company for an abundant year and makes it easier to attract and retain talent, provide outstanding customer service, and attain profitable business results.
Keep in mind that timing is everything, and your preparation will not go unnoticed. Starting your budget now gives the entire company a chance to get involved and also gives ownership of the budget to all levels of the organization.
In order to accomplish a successful budget, just remember R.A.P.I.D.S. —
- Review. Don’t repeat past mistakes. Review the budgets and actual results for the year-to-date and prior year and determine what variations need to be taken into consideration in preparation of the new budget.
- Assess. Do your trucks need an update? How about the signage and marketing materials? Assess your current resources and determine what additional resources are needed.
- Prepare. Develop contingency plans in case of potential changes in growth and the release of pent-up demand. What will be your company’s response?
- Identify. Need training to add a new service to the business? Review your strategic plan and identify goals, purposes, and resources needed to accomplish your objectives.
- Discuss. Big projects like new building additions and staff add-ons take time and planning. Discuss timelines and deadlines for when all assumptions and general guidelines need to be completed.
- Schedule. Establish a schedule for periodic reviews to allow for mid-course corrections.
The timely and proper development of next year’s budgeting is the starting point for success. Start by making thoughtful assumptions, paying attention to all potential outcomes, and utilizing the best available data sources in order to develop a robust budget. Then finalize your budget with input and thorough review from all team members to promote company cohesiveness, understanding, and ownership.