Did you set out into this year, budgets and forecasts in hand, ready to make the most of it, only to hit pause a few months in? Yes, recent events have forced a reshuffling of these initial plans and projections, but the good news is that you are an entrepreneur – agile, resilient and smart! 2020 can still be your year, but it will require some updated budgets and forecasts.
Dynamic business budgeting and functional financial forecasting are more essential than ever. Annual, quarterly and monthly budgets drawn up in advance are no longer applicable. Read on to discover how best to budget for your business in these uncertain times.
Do you feel like you lost a whole lot of control recently? You’re not alone! While the global pandemic has highlighted how little control we truly have, it is also an ideal time to focus on the aspects of your business which you can control. Start with your costs.
Taking control of your costs is often more overwhelming in your head, and definitely more manageable when penned down. Next, you’ll need to focus on your income – an aspect on which you have more influence than control. While uncertain economic times make income less predictable, it is necessary to be aware of your pricing and revenue under different sets of assumptions.
As a business owner, these past few months have certainly raised your awareness of the levels of financial responsibility you have taken on, and the importance of a buffer in times of turmoil. Don’t be caught off-guard ever again – start preparing your buffer now.
A core part of any budget is the inputs provided through forecasting – the more strategic application of anticipated future trends and flows. Forecasting dynamically in the face of an uncertain future requires you to set up a template that can be changed as conditions change.
Sign up for the BETA of OKUMM for access to an easy to use interface that allows for dynamic costing, pricing and forecasting.
Armed with clarity around your budget, you can be confident in your ability to make strategic decisions, equipping you with increased levels of agility and boosting the potential of your business’ continuity.
Help a fellow entrepreneur by sharing this so they can also take control of costs, influence their income, build their buffer and be fleet-footed around their forecasts, and proceed with confidence.