Over the years I have preached to my clients and prospective clients of, The Importance of a Budget. Not only does it allow you to gage how well you are doing on your income and expenses, it also helps you to plan for the future.
In December of 2013, I created a marketing plan with a budget that gave me a financial projection of 2014, how many new clients I needed and what special events I wanted to attend that year. However, due to the economy down fall in CA, I had to close my office in Lakeside, CA. I packed up my office and family and move to Cheyenne, WY. The Budget was totally tossed out the window. We were back in square 1 and living check to check again. After getting settled in Cheyenne, WY about 8 months later, my business had doubled in May of 2015, with no budget.
Due to the fact that I didn’t create a budget for 2015, I missed out on opportunities to expand my knowledge with conferences and seminars like: Xerocon, Scaling New Heights, and possibly QBConnect. Now, I have to sit back and watch all my friends have a blast and learn lots key information. While I try and learn what I can through social media, wishing I was there with them.
Can you create a Budget during the middle of the year?
Yes, you can create a budget anytime during the year. Talk to your Accountant or Bookkeeper and let them know that you want to create a Budget. It is never too late to create it. If you want to grow your business and make more money, you need to have this implemented. You also want to make sure your budget is a Profit First budget.
How do I go about creating a Budget?
Have your Accountant or Bookkeeper give you a copy of your Profit & Loss statement by month. Once you have your Profit & Loss Statement (P&L), get together with your Accountant or Bookkeeper and create a budget. You need a Marketing Plan, a Goal and a Target spreadsheet. A budget is not set in stone. Once it is created you want to make sure your Accountant or Bookkeeper will help you stay accountable, as well as go over the numbers monthly or quarterly to help you achieve your goal.
When you create a Marketing Plan, you will not only create what type of marketing you will do with your business, it will also create what kind of goals you will achieve to improve your business, like: conferences, seminars, and education to become certified.
The Importance of creating a Goal and Target spreadsheet!
A Goal and Target spreadsheet with help you analyze how you are going to expand your business and how to grow your business smart, at a pace you can handle. You don’t want to grow your business too fast where you will not be able to maintain and take care of your clients.