Category: Brand · 3 min read
Look at Your Budget: What are you Prioritizing?
on April 2, 2019
on April 2, 2019
Your budget is like your roadmap. The same way that a roadmap helps you make decisions to reach your end destination, the act of setting a business budget can help you figure out what your yearly goals are—and how you’re going to reach them.
How do you decide how much money is going to be allotted to each segment of our business? Is it arbitrary, or do you have a specific plan in how you organize your budget?
Ultimately, your budget can show you what’s important to your business and what you want to prioritize in the coming year, which is why it’s important to plan out your budget. It should also show where you project your business to be at the end of the year and how you want to achieve it. Do you want to grow your business, or do you like it the way it is? Do you need additional investments if you have aggressive growth plans, and how will you source the funds needed for it? Are you happy shooting from the hip?
Let’s take a closer look at what your budget may be telling you.
Your budget can show you what’s important to your business and what you want to prioritize in the coming year, which is why it’s important to plan out your budget.
Shows What Your Company Reflects
We use mirrors to show us what we look like. So, think of your budget like a mirror. Your budget tells you what you want your company to reflect at the end of the year. Want to reflect a positive and engaged culture? Maybe your budget reflects your competitive pay and the increased number of company events and parties. Want to reflect a business that’s growing? Maybe your budget contains extra funds for marketing programs and travel for training or conferences. Whatever it is, where you place your priority in your budget, that’s what your company will reflect overall.
Tells You Where to Make the Most Impact
But it goes beyond reflecting. Your budget also tells you where you want to make the most impact. What do you want to change? What do you want to focus on? I recommend focusing on one or two areas specifically. That way, you can narrow your focus and hone your budget to make sure your impact can be successful.
Says how to Accomplish Your Goals
How do you get that impact? By defining your goals and objectives, and then mapping it out in your budget. The more specific you get, the better. Your budget should tell you how to accomplish your goals, and the funds you need to ensure they happen. For example: Do you need to plan for additional investments in terms of staff and funding to hit your goals and make the impact you want? Then put it in the budget. It may even be beneficial to break it down by line item. For example: Say you budget $2,000 for a specific technology you want to purchase, or $200 for a specific ad spot you want to buy. Having this “forecast mindset” can help keep you on track and make you think of the bigger picture earlier on.
Your budget should tell you how to accomplish your goals, and the funds you need to ensure they happen.
Check it Frequently
Once you have a budget, compare it to your actual expenses at a regular frequency. That way you can validate if you are on or off track. If you’re spending without a budget and not meeting your goals, you might not know how to get things back on track until it’s too late. Let your budget be your guide, and check in monthly, so you can have a good sense of where you’re at and if you need to make any adjustments.
With this in mind, take another look at your budget. Does it focus on what you want to prioritize this year? If not, it may be worth it to reevaluate and make sure you’re on track to hit your goals. Happy budgeting!
For Financial Professional use only, not for use with the general public. #19-0157-032120
Share This Post