Your Future Business Story, shorthand budget, translates and converts your business story and action plan into financial terms. Check out my previous podcast which talks about why your business plan is a smart way to map out your future story.
In this episode of ‘I Hate Numbers’ I am going to be talking about developing, producing and using your budget to help turn your business dream into a closer reality
Why you need a Budget
Your budget is your 12-month footprint, that normally connects with your three to five-year business plan.
Budgets create accountability and targets. Clear targets motivate people to high performance levels. The numbers in your business are used to create a budget, a plan, an aspiration.
Budgets are your stories of tomorrow. They show choices, aims and objectives. Targets are typically shown in terms of money, i.e. income, costs, and profits. Targets play their part in motivation and performance.
Building Your Budget
In this podcast I talk about starting with your business story and then using number Lego bricks to build the numbers you need to know.
Actions have consequences, and in the world of business, business have consequences for your numbers. Sales and costs, profit and cash all come money in and money are affected by our actions. Listen to find out more
Monitoring and Making Judgements
“Your numbers are there to measure how well your business journey is going. Use your numbers to translate your business story into financial outcomes. If income is more than expected, and/or costs less expected then this is over performance. If income is less than expected, and/or costs more than expected then this is under performance.
A cliched phrase is what ‘gets measured gets done’. While we are talking clichés let us throw in another, ‘manage what your measure’. When you start measuring and managing using numbers, performance improves. Do not use any old measures, use ones that are controllable, relevant and meaningful to your business.
Good to Know
Numbers can be used to set targets. If you have targets you can control and improve. Be careful though, if targets are too tight and difficult then getting the best from your team will not happen. Looser, or easier targets, which have little motivational effect, will usually be achieved.
Grab a coffee, make yourself comfortable, sit back and listen.
I love doing this podcast and sharing my love of Numbers with you. Check out the link to subscribe and do not miss an episode. Help me spread that Number Love by downloading it, listening, and taking action!
In This Episode
- Understanding the importance of your business story to create your budget
- Knowing how to assemble the key parts of your budget, using number Lego
- The vital role that your budget plays in delivering your business vision
- Developing your own Numbers confidence and decisions
- Take more control of your numbers to help make you money, survive and thrive