Making a list checking it twice…no, it’s not Santa, his job is done. It’s you setting your resolutions and creating your budget for the new year!
Regardless of your goals, a new year brings a fresh clean slate, it brings excitement and possibility. As we all know, our first step towards achieving our goals for the new year, is to review and set them. This is true for your entire list of resolutions and equally important for your budget.
Your budget is a profound financial tool. It provides you with a guideline, demonstrates projected expenses and revenue, and allows you to track your performance. Although this may sound simple, and for those working in larger businesses this may sound obvious, but you’d be surprised with how many smaller businesses don’t utilize their budget appropriately. More importantly, not all businesses use their budget to achieve what is on their resolution list.
If you can see the benefit of using a budget to maximize your potential and gain success, but don’t know how to get started, you’re not alone and we’re here to help.
1. Format your ideas
Just like the rest of your business, your budget needs structure. Microsoft offers numerous free budget templates on their website. These are an excellent tool for getting started.
2. Sales Forecast
We know you don’t have a crystal ball, but you are likely to have sales history which can help you forecast your sales within the next year. Although some business owners decide to create a number, we suggest starting with your current number of customers and projects for the upcoming year and then evaluating your sales forecast. Creating numbers is fun, and faster, but it’s likely to get you into more trouble and lead to greater disappointment. Starting the new year is about starting off on the right foot, so take a moment to review your year on a quarterly basis and track those numbers to predict 2017.
3. Stop, Evaluate and Listen
Before you dive into expenses, take a look around, literally. Who do you have on staff and who do you need? Do you need to hire more people in 2017? How many people did you lose in 2016? Is there too much turnover in your business? These are really important insights into your business both financially and emotionally. If you have high attrition, is your company culture healthy? At MEGAComfort, we are major advocates of a strong workplace with a focus on mindfulness, wellbeing, and safety. You can learn more about what makes our workplace human here.
What are you going to spend in 2017? What supplies or machinery do you need to purchase or replace? This is another time to review your expenses from the previous year. Have your thumb on variable expenses (payroll and marketing) and fixed expenses (utilities and rent).
5. Plan for the Unplanned
Remember that time you were supposed to go on a business trip, but you got sick at the last minute and forfeited those expenses? Maybe the scenario is slightly different, but you can see how a change in travel plans, conference trips, and purchases can impact your business over the course of a year. Make sure you cushion your expenses so that these unplanned events don’t throw you off track.
Now that you’ve tracked your sales, expenses and other important financial details, you can subtract these totals from your projected sales. This figure will help you understand your projected profit, and now you can start readjusting your budget where you need to. You can make cuts, redirect revenue, and maybe hire someone new!
7. It’s Alive
Ok, your budget can’t literally speak to you, but you need to treat it like a living breathing thing. Throughout the year you should set aside time to review and reevaluate your budget.
8. Make the Most of Your Budget
This may seem obvious, but at the end of the year it’s easy to look back on your budget and try to look for value and where it’s gone. For example, here at MEGAComfort we like to budget for employee wellness programs. We offer pilates courses, provide our employees with supportive chairs, and most importantly we ensure everyone has a current pair of MEGAComfort insoles.
When you’re evaluating the value of budget spending, remember there are ways to both maximize productivity and increase employee satisfaction. For example, our MEGAComfort insoles provide comfort and support, while simultaneously reducing pain and fatigue. Our unique clinically designed dual layer memory foam insoles allow for greater energy and productivity at work. Your employees literally get the physical support they need to remain energized throughout the day and because our anti-fatigue insoles can go into almost any shoe. Instead of replacing anti-fatigue matting that can cause slips, trips, and falls, our anti-fatigue insoles reduce these incidents and support your team with every step!
It’s just one simple way to maximize your PPE budget and show your employees how much you care about their needs, while managing your own. MEGAComfort insoles fit almost any budget (just like they fit almost any shoe), you can utilize MEGAComfort insoles in your PPE, wellness, and footwear budget just to name a few!
Being proactive with your budget is the best way to operate your business. It will help you enjoy the ups, and balance the downs, of running a business. If you would like to purchase a pair of MEGAComfort insoles, you can do so here.