Budgeting the QR3 way
Budgeting for a business can sometimes be a daunting task.Often, a budget is perceived as something finance do every year. However, if done well, a budget can be a motivator for the whole organisation. Here’s a few hints on how we approach it:
- Be on a mission We’ve all read about having a mission statement. We view it more as a purpose for being here over the next 12 months. It’s easy to measure your success this way.
- SMART objectives Be specific and make them easily measurable. Set achievable objectives and ensure they’re relevant. Finally, timescales are essential for measuring success.
- Strategy Without a strategy in place that the whole team signs up to, Activities of a business can be haphazard if it’s senior team isn’t working towards achieving a common strategy. This can be reputationally damaging in the eyes of customers, suppliers, employees and other stakeholders. Focus everyone on the same strategies and you’ll sharpen your businesses response to all demands placed upon it.
- Budget with purpose Some businesses wouldn’t necessarily benefit from doing a budget. These are the ones who are so focused on what their objectives are that they’re constantly updating their plans as new information about markets, prices, costs and resources becomes available. These are the businesses who prepare a budget or plan for external stakeholders only, because the rest of their time, they’re 100% on their game.
- The numbers come last Have everything above in place before you even think about the numbers. Only do them when you have 100% focus on what your objectives for the year are and how you’re going to achieve them.
QR3 can facilitate the definition of your mission, strategies & objectives, as well as do the numbers for you.