Business and vacations are alike in one way: once you’ve established where you’re going, a plan and a map to get there are very helpful. While even the best-laid plans require adjustments you are better off forging ahead with one than without one. In the second of our 3 part series on planning, we cover creating the map for your strategy.
A budget done right is a roadmap to the future. Many new and growing businesses aren’t aware of how much detailed work is involved in preparing the data. It’s a lot of effort, but having an accurate plan for the coming year is essential to your company’s success.
Here are our top tips for making a budget that will work for you:
Business process outsourcing – You are doing it already.
Don’t be intimidated when you hear the term BPO, or business process outsourcing, bantered about. You are doing it already. If you have an accountant do your taxes, an attorney help with documents or an advisor for your benefits plan, you are already using BPO services.
Turning around, launching or restarting a business takes time and careful planning. It’s a venture fraught with challenges, often leaving leaders facing these characteristic challenges:
- I need to set some financial targets and work hard to reach them.
- My financial statements are inaccurate; what can we do to achieve greater transparency?
- Our business plan is developed, but it needs fine-tuning.
- The books are always closed late; how can we improve efficiency?
- Our current systems aren’t meeting our needs; what are our options?
- We thought we had enough working capital but are short on cash to meet daily expenses.
- The CFO is lacking the skills and training required for our new vision.
It may be the last stage of the strategic process, but it’s the most important. You’ve spent significant time and effort developing market intelligence and building a plan, but a poorly written plan that’s well executed is still more successful than a good plan that is poorly executed. In the third of our 3 part series on planning we cover the execution stage.