The Biggest Falsehood Stated By Business Owners
One of the biggest falsehoods which business owners claim is, “It’s not in the budget" or "That's way over budget."
The fact is this: they have no budget established. A written, proven budget-policy which is used as a tool for expansion and survival. Stating that there is a "lack of money" is a popular reason which becomes a self-fulfilling brand killer.
You need to establish a written, strategic budget which allows you to HAVE vs NOT HAVE. Without money being spent on marketing, advertising, and sales material, your KPI's and viability will suffer.
Genuine budgets are about GROWTH, not STAGNATION. Survival, not barely holding on.
What Is A Budget?
“An estimate of costs, revenues, and resources over a specified period, reflecting a reading of future financial conditions and goals. One of the most important administrative tools, a budget serves also as a (1) plan of action for achieving quantified objectives, (2) standard for measuring performance, and (3) device for coping with foreseeable adverse situations.” - BusinessDictionary.com
"A budget is a quantitative expression of a plan for a defined period of time. It may include planned sales volumes and revenues, resource quantities, costs and expenses, assets, liabilities and cash flows. It expresses strategic plans of business units, organizations, activities or events in measurable terms." - Wikipedia
Budgets Are About Achievement, Not Stagnation
Look at some of the positive words in the two above definitions:
- Cash Flows