A Budget  is not Worth a Wooden Dime!

The end of the fiscal year is upon you and it is now that you and every other business review your results to see how well (or badly) you did.

The business gurus told you that you had to prepare a Budget if you were to have any hope of doing well.

 

Much time and effort

 

 So you put a lot of time  and effort you  into preparing your Budget with all those ambitious targets and neat spreadsheets showing how your business could not help but succeed.

 

The end of a year, the start of a new year, makes us all a little reflective as we contemplate how well our business has done. Some of you will say, “Well, we’ve survived another year!” Some won’t be able to say even that.

 

But I’ll bet that your Budget, if you prepared one, didn’t plan just for survival.

 

 What went wrong?

 

A budget is a little like one of those heat seeking rockets used by the military. How is it that they almost always hit the target? The secret is in the monitoring aspect of the rocket. The weapon is hardly ever on target but the steering mechanism alters direction every second and follows that sucker until BAMMM!

 

A Budget  is not Worth a Wooden Dime!

 

Unless you understand what it is disclosing to you about your business and know how to take steps to put it back on target

 

 From the very first day what was actually happening in your business differed from what your business plan projected. Sales will have been higher or lower than your projection. Expenses will have been higher or lower and some expenses you probably won’t have even planned for at all.

 

The nice little profit you expected will have been affected by each and all of these differences.  At the end of each week or month you need to set up strategies which will bring back reality to what your business plan is projecting.

 

But used properly a Budget can be your key to success

 

Maybe it was unrealistic to project the profit that you included in your business plan. Maybe your estimate should have been higher! It is the "actual"  compared to what you had hoped to achieve which will allow you to focus your energy on what will really make a difference.

 

 

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