Heads up! It’s part 2 of our 2018 prep series and you won’t want to miss this important step in planning for 2018… budget development. I know, I know, hardly everyone’s favorite topic but it’s one of the most important.
Along with your 2017 budget and financials to date, grab your 2018 business goals you created last week and let’s get started.
- Review your 2017 budget. How did your budget hold up in 2017? Look specifically for areas of over and under spending and analyze these as areas of opportunity in 2018. For areas of overspending – do you need to change a process to increase efficiency or should you increase the budget cap for this line item? If the item in question was a profitable one, by all means, consider spending more of your funds in this area! Where you under spent in comparison to your budget, consider if the lower dollar amount was appropriate – did you meet your goals with that task despite decreased spending? (THIS would be a win!!) If you under spent and the item was a successful, profitable one, this is an area of opportunity! Make some adjustments to your business plan to engage in more of this particular activity.
- Review your 2017 and 2018 business goals. You may have some clue as to how your 2017 business goals fared after reviewing your budget. For further insight, check out last week’s blog on goal setting for business. Review your 2018 business goals in comparison to 2017 and….
- Make a change! Based on your review of your budget and your goals for 2018, where are your biggest areas of opportunity? These would be those profitable areas where you underspent or areas where you increased budget caps based on past successes. A simple change in your budget can advance your progress toward your business goals and, ultimately, your bottom line.
- Schedule quarterly check-ins. Check in on yourself! At least quarterly, schedule time for a mini review of your goals and budget. Repeat steps 1-3 and adjust your plans as the year unfolds. The more you make reviewing and adjusting a habit, the more it’ll become second nature. You’ll also love the control you’ll have over your own business success!
Need a second set of eyes to review how your business goals, strategy, and budget line up and work together for success? Give us a call at Piccolo Marketing at 615-348-7768 to get started.
Get ready for 2018 with our blog prep series: