Do We Have to do all the Things - Celia Powell

 
Do we really have to do All the things? Season‌ ‌4‌ ‌ ‌
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Introduction‌ ‌
2020, the year of uncertainty with  the pandemic and other major shifts in our world, has created a variety of unknowns. Unknowns as to how do we budget for our businesses during times like these?  On today’s show “ Do We Really Have to Do All the Things'', we will examine how to approach budgeting during unprecedented times. 

​The previous Episode of “By the Numbers”, “Are We There Yet”? The Post Pandemic Financial Plan, introduced listeners to multiple frameworks as guides to planning our business operations during uncertainty. This week we will build upon that episode and walkthrough creating a budget that aligns with some of the key concepts from Episode 4.

When creating a budget the usual approach is to review historical financial transactions and looking back at the year 2020, it may become difficult to create a future while looking at a distorted past financial performance of our businesses. Not all past performances were bad, there were many businesses that thrived during 2020, because they were positioned appropriately with what the client/customer needed as things began to shift to accommodate lock downs, remote working which created digitally transformed businesses

Show‌ ‌Objectives‌ ‌-‌ ‌The‌ ‌Why‌ ‌
We have approached a new phase in time, the “Next Normal”, we have to explore and reimagine what our “next normal” will look like.  Many businesses will have to retool their models and operations to support the “next”, development stage for many of our businesses. For some businesses, it’s a matter of survival. We cannot operate without a plan, as we move through this phase we must ask ourselves, do we really have to do all the things that we used to do?

Do we have to do all the things the way we did it pre-pandemically? As the questions are answered, it will create a need for the business to respond financially and develop a budget that aligns.

This episode will offer the listener best practices when creating a budget during this season of uncertainty and steps to set yourself up for success in the future, regardless of what happens next. Budgeting is difficult especially now but critical to keeping businesses on track
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Key‌ ‌Issues‌ ‌-‌ ‌​Owner/Manager‌ ‌Perspective:‌ ‌
The unpredictable environment has caused the prior budget assumptions to become unstable, unreliable and keeping many business owners awake at night. Questions that come to mind are:

• Should we re-open?
• Should we close again?
• How much inventory should we stock?
• Is now the time to hire?
• Should we try to get out of our current lease?
• How should we budget for the future?

 
What‌ ‌You‌ ‌Need‌ ‌to‌ ‌Know:‌‌ ‌Prior‌ ‌Episodes‌ ‌
Episode F4.004 Are There Yet Show Outline‌
What‌ ‌You‌ ‌Need‌ ‌to‌ ‌Do‌​‌ ‌-‌ ‌‌Tips and Best Practices

• Create Multiple Budgets
  • Determine Revenue
  • Determine Expenses
  • Access the difference and impact to cash flow    
• Review Your Budget Regularly
• Find a Business Loan
• Implement and make it happen. 

 
Article‌ ‌link:‌ ‌ ‌
Create a Small Business Budget in 5 Simple Steps | FreshBooks Blog
Budgeting in Times of Uncertainties: A How-To Guide for Small Businesses (coverwallet.com)
 
 ‌Shows‌ ‌
Previous:‌ ‌ ‌Episode‌‌ ‌‌4‌  ‌‌Are We There Yet? The Post Pandemic Financial Plan
 Next:  Episode 5 Dealing with “The Not Good with Money Mindset”.
 
 
Written‌ ‌by‌ ‌Celia‌ ‌L.‌ ‌Powell‌ ‌CPA‌ ‌
 
www.Celiapowellcpa.com
Facebook‌ ‌@celiapowellcpa
Instagram‌ ‌@celiapowellcpa

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