Not too long ago, the owner of a rapidly growing business called me up and complained about how she’d gone through 3 or 4 bookkeepers. They weren’t doing what she wanted. She never received reports. The list of issues went on and on.
Eager to help resolve this long source of frustration for her, I told her that Officeheads could create a stronger financial engine for her based on our 4-Gear Financial System and add a far more reliable bookkeeper to her financial team. That way, she could comfortably create a budget for her business.
Problem solved, right? Not quite.
In fact, that’s the exact moment she put her foot down and said, “Hell no, I am not doing a budget!”
You see, being an international traveler for her business, she always had first-class airfare. She was positive that creating a budget would mean the end of her stylish travel – and there was absolutely no way that was ever going to happen on her watch.
That’s when my answer completely shocked her:
“I’m not going to tell you that you can’t fly first-class.”
“Wait. You’re not?”
“No. However, I am going to tell you the story of your numbers.”
What’s The Story Of Your Numbers?
Let’s look at the big picture: As a business owner, you need to understand your ultimate goal. You’re in a race that essentially has 12 laps, each one representing every month of the year. There are also many elements competing against you, but there’s one thing to help ensure you’re winning: Profit.
That’s right. Winning is profit. Say it over and over again with me.
At the end of the year, profit reflects the health of your business. Is that profit 1%, 10% or 20%? Different owners can have different percentages and in turn, different ideas of whether they’re winning or not and to what degree. Above all, knowing what your goal is in terms of profitability gives you some much-needed perspective beyond just the numbers.
It’s OK to have a more expensive line item such as traveling first-class – as long as you also understand that something else may have to give. Know how it affects the bottom line and make the tough decisions if necessary. Perhaps that means giving up on some high-end office supplies or cutting back on how much you need to wine-and-dine your clients.
Budgeting is more about trade-offs versus sacrificing – if the plan is done right. A conversation with Officeheads on what you value most as you grow your business can result in a budget that moves with your momentum. Schedule a call with me today.