The nicest thing about not planning is that failure always comes as a complete surprise and is not preceded by a period of worry and desperation.
When I ask clients if they want our help preparing next year’s budget, there’s always a few responses that boil down to “Why, Mr. Bean Counter? You’re just going to tell me how many paper clips I can buy next year.”
It is true that preparing a budget includes taking a hard look at how we spend money. But it can be so much more. At least the way we do it with our clients.
Let’s begin by replacing the word “budget” with more useful and evocative language. How about your “financial plan?” Your “profit blueprint?” Your “money story?” Don’t you want to be the author of your money story?
Here are some of the responses I give to the paper clip question.
The best businesses – longest lasting, most profitable, always growing – plan for the future. They attach numbers to strategic objectives, dreams, and intentions. If it works for Apple, why not you?
Budgeting develops the organizational muscles of resource planning. Money and time are limited. Thinking about when and why we choose to deploy those precious resources is part of leadership. It’s in your job description as an entrepreneur.
For our clients the budget is dynamic and active throughout the year. We’re constantly forecasting and measuring and tweaking the forecast again. Over time we wind up with a customized business tool that can predict the future. Wouldn’t it be useful to know where you will be six/twelve months from now?
If you are new to budgeting, I invite you to download our free 13-week Cash Flow resource and start exploring. If you’d like assistance with planning a 12-month annual budget, feel free to Contact Us and we’d be happy to chat!