Linking the two builds company worth and will reward you at time of company sale
Ask yourself this question – is my budget for this year connected to the initiatives (actions) I have my team working on? Too often we see the answer is no. The budgeting is more of a math exercise and little connection to what the team is actually, proactively working on for the year.
Look at your budget for the year, ask yourself:
- What do I need my team specifically working on that will help us achieve our top line revenue budget?
- What revenue do we expect from our top 10 customers and what actions are needed to achieve this?
- What amount of revenue did we assume in our budget coming from new customers – what steps do we need to take to find and onboard these customers?
- What gross margin assumptions did you build into your budget, therefore what do you need your team working on to achieve them?
- What SG&A assumptions did we make in our budget and what do you need your team working on to achieve them?
The questions could go on but you get the idea. Have confidence that your budget and what your team is working on are linked. Doing so can help build the worth of your business, not doing so is a big missed opportunity.
