Do we really have to do All the things? Season 4
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
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:
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 a Small Business Budget in 5 Simple Steps | FreshBooks Blog
Budgeting in Times of Uncertainties: A How-To Guide for Small Businesses (coverwallet.com)
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
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