Ep 43: Avoid Budget Blowouts - How to Create a Budget in 2021 - Coaching Conversations
Today in Coaching Conversations, CHRIS and Business Growth Expert, Tony share their financial wisdom on budgets! What is it… how do you create one... and is a budget really a goal-based target? CHRIS and Tony remove the fear around setting targets through budgets. Your new budget should provide the framework to plot strategic business decisions. The clarity for the future… and accountability to change decisions when the numbers are not stacking up. So, let’s get to it – let’s debunk some myths and deconstruct budget anxiety in another insightful episode of Coaching Conversations! Time Code/Show Notes 0.22 Welcome to the show and intro. 1.30 Do you really need a budget in business? Yes! And what is it? It’s simply a PLAN. Tony breaks it down in terms that we all understand! If you feel out of control with what’s happening within the business, chances are your budget is non-existent or not doing its job. 4.00 Where to start? A basic budget involves examining what you did last year – and improving it. Tony suggests adding 10%. Then measuring those actual figures against what you planned to do each month. Plan what you intend to make – and plan what you intend to spend. This will have a big impact on your operating profit at the end of the year! 7.45 Tony recommends business.gov.au for some very handy resources. 8.55 Do you have a budget currently? How do you go about making one for yourself? The answer is research; talk to your bookkeeper or accountant! Educate yourself. Use the people around you. Plan more, do more; it’s a lovely side effect of training yourself up – and it’s addictive. 10.55 So, how do you plan well and execute well? Planning is purely trying to foresee what’s coming so you can make important decisions and this is firmly based in research. Investing time into observing, learning and deconstructing how your business performed in the past will lead to educated planning. 12.38 Ask yourself. What do I have to do this week in order to make money? Break it down – am I doing better or worse than budget. What can I keep, what needs revision? What is within my scope of “doing”? What am I learning that will help make next month’s budget better? Executing a budget involves lots of questions! 15.25 Developing profit-making habits is easier than you think. How often do you track your budget versus what is actually happening? Tony strongly advises weekly, if not monthly for some very sound reasons. 19.00 “It’s not about looking, it’s about doing”. You can look at your numbers but if you don’t craft a ‘to-do list’ you’re behind the eight balls again. Budgeting is like turning the light on in a really dark room. Do not be afraid of doing your own budget! 22.31 If you want to have a crack at preparing your own budget and need help, Tony is brilliant. Flip an email now to firstname.lastname@example.org EPISODE SUMMARY We all have to start somewhere. And you certainly don’t need to be a whizz with figures to create a budget and turn your business around! Use your resources, get advice – it’s that simple to begin the journey to control and manage some of the numbers in your business. Investing in the knowledge of your business, no matter how small, can awaken the giant – train yourself up and turn that learning into a natural habit. A process that becomes second nature! Developing profit-making habits is easier than you think. You just have to begin!