As I work on finalizing our High Road Digital budget for next year, I can’t help to think about where we are heading and how we are going to get there. Webster’s defines budget as the amount of money available for spending that is based on a plan for how it will be spent.
The budgeting process for us requires a little more detail; first, we define the revenue potential in each of our markets. Next, we determine of that potential how much is made up of each product or service we offer our clients. Then we look at cost of goods sold, staffing, and resources to make sure that our revenue budget is realistic, and our expenses are aligned. Sounds fairly easy, right?
Not exactly, the mechanics of budgeting can be fairly simple it’s the strategy behind budgeting where most of us get it wrong. Our budget needs to be a reflection of our company’s vision, the overall plan, and goals. It should be a way to measure our success and provide us insight on areas that need improvement.
Many business leaders dread this time of year and go through the budget process with the mindset of let’s get it done and checked off the to-do list. If you are one of “those” leaders I would challenge you to think about the following:
• Where have you been this past year? Are you still traveling the same road, has your vision changed, is your mission the same?
• Who is your client/consumer? How have their needs changed, do they still need your products and services, are you still relevant to them?
• Do you have a strategy and plan that moves past not only growing revenue and controlling expenses? What is your bigger purpose, how do you make the lives of your clients/consumers better, do you feel motivated to succeed?
• Are these things reflected accordingly in your budget or is it just another year of plugging numbers into a spreadsheet?
At High Road Digital, our clients’ businesses are more to us than numbers in a spreadsheet. We thrive to help them reach their goals, be relevant, and make a difference in the communities where they live and work.
Let us be a part of your “budgeting” process.