Unfortunately, experts say the key to budgeting for 2012 is being prepared for the worst.
Will your business be prepared in 2012?
Budgeting is crucial for small businesses especially in a turbulent economy. A well kept budget can be the difference between business success and failure.
We always recommend that you start with a situation analysis. Take a deeper look at the state of the union so to speak – what have you accomplished to date, what is your current business situation and where would you like your business to be tomorrow and 3- 5 years down the road? Then forecast your sales over the next 6 to 8 months.
Examine existing customer database
Budget for “What If” scenarios
Review Budget Often
Take a look at your existing customer database and try to improve those relationships and make them stronger. Rather than trying to acquire new customers right now which can be costly, try to strengthen your relationships with your current customers and make sure they are aware of all your offerings. You can try to sell additional products to your current customers.
Budget for “what if” scenarios- such as if you do plan to launch a product, budget for best and worst case scenarios. We recommend creating sub-budgets to break out what if scenarios. Hopefully the launch goes great, but what’s the plan if sales aren’t’ stellar? Perhaps have a mark down strategy ready in place to move through the product etc. Really think through your choices and plan for them in your budget / sub-budgets.
Review your budget – so many of us create a budget and then put it away. Your strategy should be to review your budget at least monthly. Reviewing the budget allows you to see where you are going and react accordingly.
What is Your #1 Business Challenge?
Whatever your business challenge is, we can help you starting today.
Simply click the link below to schedule your free 30 minute, no obligation, phone consultation. We’ll focus on your #1 challenge, and at the end of the call we’ll give you at least one practical strategy so that you can move forward immediately.
Or you can follow the link and our business coaches can provide a Complimentary Business Evaluation or Complimentary Budgeting and Forecasting session to show you how to build a budget and a forecast system for your business that is easy to maintain and understand.
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