Sometimes we can live in a fantasy world. We can visualise ourselves as millionaires, Victoria secret models, married to David Beckham etc. There is nothing wrong with a little bit of fantasy. When is it wrong to fantasize ….. when you are putting the budget together for your business. When drafting your budget, you must be careful not to show what you want to see rather than what is reasonable. Don’t overestimate your revenue and underestimate your costs. Live in the real world. If there are doubts about certain customers, acknowledge them. Having something that is realistic now prevents those sleepless nights throughout the year when your performance does not match your budget.
Our previous article highlighted the data that you already have can assist in your future predictions. Your data will tell you lots and allow you to create a budget that is more fit for purpose. We are not saying to not have aspirations, of course you are working hard to make your business a success, however the numbers don’t lie. Keeping track and adjusting performance is just as important as the initial budget. You can adjust your numbers accordingly to reflect your current and future position.
If you want to find out some more information on how to create something fit for purpose for your business then pop us an email at firstname.lastname@example.org.