A Budget is TELLING your money where to go instead of WONDERING where it went.
Let' talk about relationship and Accountability to money & budgets in business & in family today, starting the new year…
First lets talk about why a budget is so important ,,, direction, accountability, agreements, level playing field, synergy (everyone pulling the wagon), consensus, team building, just to name a few, do you have any words that explain the importance of budgets, please put them in the comments.
Should ANYONE be in business or family without a Budget?
To start a budget all parties my be in agreement to the budget correct? So how do we accomplish this?
For businesses and corporations this might look like a meeting with all department heads and decision makers. Looking at last years P&L and project Revenue for the year, and vet out an "one time expenses for the last year, and add any new expenses that parties are aware of. All departments agree on their operating budget. The Budget is set.
For families/marriages this might look like a family meeting. How many of you have weekly or monthly family meetings? I like to recommend that these meetings are set on a recurring cycle, the same day and time for each recurrence. Then everyone has that day & time in memory.
For families, I encourage this not to just be about budget, but include challenges & success as part of the agenda for the meeting. I encourage a large binder that houses all documents and schedules (one go to place for everything family related) I have also found it a great opportunity to go over everyone's schedules so there are no surprises and everyone knows what the expectations are. You can also take the time to go any changes to chores and maintaining the household, and any necessary delegations you have found need adjustments. No cell phones are allowed, and must be turned off. I find it nice to have a snack available during the meeting. Always have your 'House Rules' in the middle of the table for refence, additions, or edits. Notes are taken from the meeting and decisions are noted.
For start up's intentionally dreaming of a business. Make your business plan up front, this is the first step prior to going any further. There are many templates for this and I would be happy to share. Your business plan sets the intention for the business in both revenue and expenses. Once this is established you have a blueprint and have vetted your business for a successful plan. This is a mini budget if you will. After you complete your business plan, cut out pictures or use large brushstroke words that explain where you, your family, and business will be in one year.