In business we are lucky enough to get two chances to start the year. July is our second chance to revisit and reset our business expectations and frame them anew as budgetary and strategic goals.
Don’t let the opportunity pass you by.
To benefit from a solid plan, you don't need to have NASA's ambition to walk on the moon 50 years ago, when they hadn't yet put a single man on orbit. Do you have a business plan (which means a current, written plan that you review regularly)? ... And a budget (which does not mean comparing this month with the same month last year!)? ...
Then you are very welcome to stop reading this and start reading other posts from my colleagues.
Still Reading? Your Business Plan "Could Be Better"? You’re far from alone. I once had a client whose business was turning over more than $40m, who when we first met had no written business plan and no budget. As a result, the business kept on doing what it had always done; and kept on getting what it had always got. And, of course, a business with no budget ends up using the obvious metric of success – meeting its commitments. In this business, that meant the Chief Finance Officer had the title, but never got even close to fulfilling the function.
He was spending three days every week juggling the cash to pay wages and bills; once a quarter he was scraping up enough funds to pay BAS. And once a year he negotiated terms with the Tax Office on a growing unpaid tax bill. So what happened to business expectations? In effect, the business finances were run according to how much noise the cash tin made when you rattled it. And every year, the business had pretty much broke even. This was not a coincidence.
Either you have a plan for your business, which means a current, written plan that you review regularly; or you don’t. And if you don’t, then your business has a plan for you: if you’re not running your business, then your business is running you. You’ll find yourself running from pillar to post, fighting every fire as it breaks out. You’ll be busy, busy, busy! Exhausted at the end of the day, you'll be certain that all this busyness must mean you’re doing all you can. You’re too busy to get anything done.
Same is true of a budget – and last year’s performance is not a budget, because things have changed since last year. I’m off to spend a couple of hours with a business owner to help him create the first budget his business has ever had (it’s not a big business). Will a couple of hours be enough? Certainly not. Will what budgeting we get done in two hours today make an appreciable difference to how he runs his business? It certainly will. And will business expectations change? Yes. If experience is anything to go by, this first taste of what it is like to take control will be enough to convince him that it is worth the effort. Two hours is enough to start making a difference in your business. So can you spare 120 minutes?
Our members stand ready to share their wealth of knowledge with you. It costs nothing to find out what we can do - and not doing so may be costing you money right now. Do please feel free to contact Steve Carey, or any of our members HERE By the way If you find this article stimulating and useful, you'll enjoy reading plenty more posts on this website , because we take your success personally.
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