The Australian Federal Budget is now available. You have probably been thinking about the implications of this budget for you personally and your business. This article is the continuation of the previous article in this series. It’s about planning (even though it might seem dreadful for some of you), teamwork, and having fun.
You must know where your company is going if you want to create a sustainable future. It’s that simple. It’s like bush hiking. Perhaps you are the adventurous type who leaves with only a snack and a water bottle. While you might enjoy a few hours of wandering, once the water has run out, you’ll start to worry about your safety and want to return to your comfort zone. You might find yourself so far from the main road that it is impossible to get there. It’s okay to go off-the-beaten-path in business, but it is essential that you are prepared. You must at least have enough cash flow (cash flow) and a business plan (compass) to guide you on your journey.
If you’re hiking with your team, it’s essential to include everyone in the planning. Everyone should be happy with the route, the risks, and the destination. This will help us all to stay motivated, committed, and satisfied throughout the trip. Another critical aspect of the trip is food and drink supplies (budgeting, cash flow predictions). Before we can replenish our reserves, we will need to work together to determine how and when we will consume them. We won’t run into unexpected problems if we all agree on everything.
Here are my top tips for how to navigate the budgeting phase and plan your future, particularly next year.
Know your goals
Be clear about your vision and values. Next, set company goals for the next five years. Then break them down into years and quarters. This is a time-consuming task. You should take your time, get input from the team and ask for their feedback. This fosters inclusion and holds employees accountable for their part.
Look back at the last year
Most people have very little. Ask yourself what you can do more. (What works already); What can you do better? (What works well); Better? (What didn’t work). It’s possible to think that it is so simple, yet not more people are doing it. It is easy to do, but it is not so simple. The good news? You have the option!
With your team, take a look at not only next year’s Key Performance Indicators but also your business’ Key Risk Indicators. What will the Federal Budget impact on your business’s future? How will new taxes affect your business? Funding cuts? What are the outlooks for commodity prices? You can also look at your Capability Indicators to go one step further. What are the steps the business needs to take to increase the skill level of the workforce? Or to bring the team closer together?
Budget and Cash Flow:
Take your time, but involve the whole team. The team will be more proud and caring if they know what they can do together. Do not try to plan everything. It’s all about giving your business direction and tools to help you make course corrections. You can trade off what you don’t want or buy something else. Flexibility and sensory acuity are crucial to this process.
Without regularly measuring the progress, even the best planning is useless. If you don’t let your compass guide you to your destination, it won’t do much for you. Establish regular reporting times and meet with the team. Make sure everyone is aware of the progress and works in the same direction.
Have fun with it
Many people cringe at the mentions of Planning, Budget, and Cash Flow. They don’t have. For more fun in presenting results or holding team meetings, you might consider putting a cartoon or picture of the related cartoon on the reports. You could also take turns to deliver the results and run the meetings.
The key to success is to include all members of your team at every stage. This will help you build a cohesive front to reach the top of the mountain safely and with success!