Why does my business need a budget?
Clear Vision • May 29, 2018
We hear this a lot! Often goes along with, “ I can pay my bills and wages – why worry?” or “I do the work, pay the bills and just spend what’s left.”
If this sounds like your approach we offer the following reasons why you should talk to us NOW about getting a proper budget in place for your business or personal situation.
- See what’s coming – Setting a budget at the beginning of the year can help you see problems or other issues that you need to address ahead of time. Key decisions around staffing, equipment, materials, space and cashflow can be made with careful consideration – not in a rush when you’re taken by surprise.
- Get everyone on the same page – Your business probably relies on a range of people to make it function effectively. Setting a budget that everyone knows and understands makes it easy for everyone to work in the same direction. For performance driven staff it can also make it clear how the connection between the money they generate for the business, the money they are paid and the sustainability of the business is connected.
- A critical measuring stick – As Zig Zigler said, “If you aim at nothing, you will hit it every time.” A budget lets you measure and track your performance against your expectations. If you’re not hitting those expectations – what’s the cause?
- Financing or Exit Strategies – Being able to demonstrate a history of setting budgets and working to them – whether they are 100% successful or not – is one of the strongest ways to demonstrate to a financier that you are capable of repaying a loan. If you’re considering an exit strategy a budget set out over several years showing how the business has developed will help reassure a potential buyer about what they can expect.
- Keeping your wallet closed! – Your business spending is far more likely to be kept under control when money is allocated within a documented budget and unallocated spending is either not tolerated or kept to a minimum.
- Spending & Profit connected – It’s surprising how often smart business owners don’t connect their spending directly enough to their eventual profit. With a properly formulated budget you can see immediately how an increase in spending will impact the amount of profit in your pocket at the end of the year.
If you need help getting a budget set for your business please contact us to arrange an appointment to discuss.
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At Clear Vision Accountancy Group, we offer tailored services to support your long-term success—from strategic business planning to high-end tax administration. Whether you're aiming for growth, improved profitability, or a clearer direction, we're here to help you build a plan that gets results. If you're ready to map out the next five years with clarity and confidence, contact us today on (07) 4688 2500. Our 1-Page Business Plan will help you with: 1. Vision & Purpose Where are you headed, and why does it matter? What is the core purpose of your business? In five years, what positive impact will you have made on your customers, team, or community? What do you want your business to be recognised for within your industry? 2. Growth & Scale What does success look like, and how will you achieve it? What revenue, profit, or market position are you targeting? How many clients or customers do you want to serve—and in which markets? Are you planning to expand your offerings or enter new territories? 3. Team & Culture Who is helping you build it—and how? What does your ideal team look like in terms of structure, culture, and capabilities? How will you attract, retain, and develop top talent? What kind of leadership values and workplace environment will you foster? 4. Operations & Systems How will you deliver at scale—efficiently and reliably? What systems and workflows need to be in place to support sustainable growth? Which technologies or platforms will you implement to improve efficiency? How automated or streamlined do you want your business operations to become? 5. Brand & Customer Experience What do customers say about you—and why do they keep coming back? How will clients describe their experience with your business? What kind of reputation or brand presence will you be known for? What sets your business apart from the competition ? Our Dream it. Plan it. Get it! will help you with: 1. Lifestyle & Personal Goals How does your business support the life you want to live? What level of involvement do you want in the day-to-day operations? What does ideal work-life balance look like for you? What personal or financial goals will your business help you achieve?
