Well, its that time of year again, our fiscal year is about to start and I am completing my operational business plan and my budget. Some interesting items I noticed this year. As your business grows and matures the business plan gets easier as you know your model and you know what works and what does not. Similar with the budget, I feel there are less unknowns in this budget that any previous year.
As much as this process can be daunting each year, each time I complete it I am pleased with the outcome. Going through this process forces you to address and ask certain questions and ensure you have answers. My model is to set an operational business plan with main strategies and tactics to achieve those strategies. Throughout the year myself and my staff attempt to accomplish as many of the tasks as possible. Then throughout the year I keep track of all the ideas we come up with throughout the year and document them for next year’s plan. I find this works as then you are not going on tangents all year, you stick to a plan.
Obviously, if the idea is time sensitive you have to decide whether or not to implement. I find if it is a good idea sometime during the year it will be a good or great idea by the end of the year. As for the budget, I like to follow this closely and compare month to date and year to date figures. This allows you to ensure your expenses and revenues are on track and if not forces you to ask yourself why is there a difference.
A lot of successful businesses talk about the key to their business is a good plan and budgeting process. I truly believe this and if done properly does not have to take a lot of time each year to do.
