Management Information |
Budgets!
Budgets! There I've said it. For some the most hated and feared word in business. But it doesn't have to be that way. As a matter of fact, a well thought out and constructed budget can be the small business owners best friend. After all, a budget is just a laid out plan to produce profits and profits is what we are all after. Instead of feeling overwhelmed by looking at a 13 column budget spreadsheet with rows and rows of expenses, just break it down into it's simplest terms: Revenue - Expenses = Profits Looking at it this way, we see there are only two things to control, work on or even worry about, revenue and expenses. The only way to increase profits is to increase revenue or reduce expenses. Our jobs, as business owners of course, is to do both thus accelerating our profits. I know this is business 101, the very basics and sounds so simple but you'd be surprised how many businesses today don't operate on a budget. Please take the time, or call me for help on this, and write down a simple budget of all of your revenue streams and every single expense you have on a monthly basis. If you still don't grasp the concept then have your accountant or tax preparer show you how. Once you have everything written down you use this as a guide to manage your profits. How can we reduce communications costs (phone bill)? Is our graphics printer the best we can do or is it time to get competitive bids (printing expenses)? Can we refinance a business loan to reduce monthly interest expenses? Line by line you look at your expenses and see if there is any thing you can do to reduce them. Don't forget your revenue streams too. Is there something or some service you sell that could handle a price increase? Is there a new product or service you can introduce to bring in more revenue. Focus on growing revenue and look at each of those expenses line by line and you may be surprised at how much profit you can squeeze out of your existing operation. Mike Shannon is the owner of Shamrock Business Coaching, a coaching practice that helps business owners increase profits. You can visit Shamrock Business Coaching on the web at: http://www.ShamrockCoaching.com.
MORE RESOURCES: Unable to open RSS Feed $XMLfilename with error HTTP ERROR: 404, exiting |
RELATED ARTICLES
Out of Control? There are papers on the floor, across the desk and resting on the keyboard. Piles of files are all around. Why and How to Work with a Consultant A good consultant provides specialist abilities and experience, innovative ideas, second opinions (reality checks), unbiased appraisals, and new approaches.A good consultant will leave you with tools, plans, and materials, and will transfer knowledge and resources to help you use them. Internal Communication: 12 Essential Elements There are 12 essential elements of a successful internal communications strategy:1. Effective employee-directed communications must be led from the top Effective communications require the active commitment and endorsement of senior managers. Planning Your Recruiting Efforts Can Help You Find Great Employees Today, companies have an ever-expanding list of options available to them when it comes to sourcing new employees, from advertising in newspapers and trade journals to powerful, cost-effective recruiting options available through the Internet. Unfortunately, the growth in the number of recruiting options available has made the competition for top candidates even more fierce. How Bad Communication Can Hold You Back and How to Break Free of It The reason jobs are often not done right and employees are fired is because of lack of skill. Right? Wrong! Poor communication and ineffective human relations are the major causes. Teaching Large Companies To Think Like The Little Guys Q: I am an executive at a large company and in our industry we are seeing a trend wherein smaller companies are gaining market share at an alarming rate. Our CEO believes the reason for this is that smaller companies are more prone to innovation and more entrepreneurial than larger companies. Optimizing Your Cash Flow With Proper Accounts Receivable Management Businesses miss on growth opportunities and even close their doors every day, not because they aren't profitable enough, but because they are strangled by poor cash flow. The problem is that while their profit and loss statement shows success, their bank account cries poor. Employee Turnover: Seven Reasons Why People Quit Their Jobs There are many reasons why good employees quit and go to another company, perhaps even your competitor. Most of the reasons start with management and most are preventable. Print Buying Consultant Ten Money Saving Tips for Print ManagersDespite their stated desire to realize savings from streamlining the various components associated with the print buying process, it's been my experience over the years, that many print managers neglect to do some of the easy things that can add up to significant cost savings annually. We all know these things, but we don't always do them. Basic Management Skills Recent studies have shown that industrial supervisors are working at less than 60 % of their potential. Basic management skills training is guaranteed to change all this and at such little costManager in contextMost of my adult life has been spent working as a supervisor or manager on industrial projects throughout the world. Managing Performance: Don't Let Slackers Bring Down Your "A" Players As a manager, it is your job to ensure that the work gets done effectively. Coaching and discipline are unpleasant tasks. Make It Easy to Reply - Voice Mail That Works If you are like most business people, voice mail has both simplified and complicated your life. On the good side, it helps you exchange information. Three Foundation Stones for Building Organizational Integrity When the stock market crashed in 1929, there were a lot of people who lost everything they had. You would think that the result of that event would be complete and utter despair. Déjà Vu MCI to Qwest International Inc: Can this Corporate Marriage Survive? Current Situation:As of this writing, the MCI Board of Governors has given Verizon Communications Inc. one week to sweeten their $7. Argue Your Way To Business Success "Jack" (not his real name) is a vice president of a publicly traded company. Recently, Jack's stress and anxiety levels have been high enough to impact both his working and his personal lives. Implementing Change There are different reactions that individuals experience during time of change. Understanding the emotions of an individual may better help them get through the period of unexpected change. 5 Ways to Work More Effectively With Your Administrative Assistant Stop hiring new administrative support staff. And learn how to retain your existing administrative staff. How to Delegate Effectively ACCOUNTABILITY: Delegation is not complete unless subordinates are held accountable for their work. They should be accountable to only one person-usually their immediate manager-and must understand what criteria will be used in judging their performance. Effective Email Communication Email, when used properly, can generate additional direct sales and leads; can be used as a tool to communicate with your existing client base to let them know of upcoming events which may affect them; and as a means of ongoing promotion for your business.The following is a list of simple guidelines and tips that will help you become an effective email communicator. What Every Manager Should Know About How to Conduct Successful Training Activities Whether you are training preschoolers in the classroom or executives in the board room, here are 15 premises you might want to keep in mind the next time you're designing training activities.1. |
home | site map | contact us |