This Philly girl has to take a moment to scream something at the top of this newsletter, “FLY EAGLES FLY!” The vibe around this city lately has been electric! In fact, the entire city basically shut down on Parade Day. It’s fantastic to be a part of this magical time and I’m so proud of our team.
I knew I wanted to write about budgets this month and let’s face it; budgets aren’t very exciting, are they? So while I’m still celebrating our major win, let’s use some fun football analogies to keep it interesting.
What happened in 2017 is done and it’s time to plan for the year ahead. Yes, my Eagles are flying high right now, but pretty soon, it’s back to training camp and everything starts all over again. A new plan must be made. Just like in your business.
Look at your numbers from last year to begin the process of building your budget. There are specific income amounts you should already know are coming in. If you have recurring income from retainer clients, or you know you do a project every April for the same client, begin by putting those numbers into a spreadsheet.
Estimate additional income possibilities. Are you attending a conference in June and you think you will close a new retainer client at the end of that? Put it in. Teams attend the draft every year to build their roster, to find the missing components. If you have a really bad August every year because you go on vacation, start to think about how to fill that gap in income now.
Put in your expenses. Again, many of these will be recurring. You know what you pay your website host every month or what membership dues you pay to certain networking organizations. You know what you pay your support team or what percentage you save for taxes. Try to estimate additional expenses. That conference in June? You know you will have travel plans surrounding it, so estimate expenses for hotel, food, airfare, etc. Even book in advance if you can to save money.
Leave room for the unexpected. I don’t think the Eagles thought they’d be playing the big game with Nick Foles instead of Carson Wentz at QB, but it happened. And they adjusted and came out victorious. Ensure you have savings in place or at least a rainy day fund to cover a potentially major blow to your income.
Just like a team loses and gains players each year, your client roster will also change. Determine if existing clients could move into bigger packages or if you think any of those recurring contracts may end. Just as you are cutting expenses, so is everyone else. And if you’re the thing that gets cut, be ready. There should be players on your practice squad, clients that you have been networking with, that might be ready to come in and play.
Think about slow times or “bye weeks.” A team uses a bye week to rest and get ready for the next game. Your bye weeks come more often, they are your slow times. Use them to your advantage. Can you bring in some more income by teaching a class or running a workshop? Get it into the budget.
Set your goals! Do you want to have a 300K year? A million dollar year? A $25 million dollar year? Those goals can break down into quarters, just like football games. A team sets its sights on winning games, first. Every quarter is an opportunity for new plays. Then it’s the playoffs, winning the division championship, THEN the Super Bowl. The ultimate financial goal is great to have, but break it down into quarters, months, or even weeks, whatever makes the most sense to you and gives you the best outline of the year.
Your budget doesn’t have to be exactly right; it’s just an estimate. It gives you a clearer idea of the year ahead. It’s a living document. Keep it updated and use any data you accumulate to keep it accurate.
If you want to talk budgets, get on my calendar and let’s get 2018 off to the best possible start. Don’t go offsides before the big play even starts.
