Tips for Building Your 2024 Budget
It’s everyone’s favorite part of year-end -- planning for the holid-- oh, wait. It’s planning next year’s budget! That’s fun too, right? RIGHT? In all seriousness, budgeting for the next year should be a good opportunity for a little course correction, careful optimism and a reevaluation of your business goals. Let’s get to it!
Strength in Numbers: Setting Your 2024 Budget
Budgeting is like brushing your teeth -- it can be annoying in the moment but can save you all kinds of pain down the road. If you’re anything like me, 2024 has been on your mind for a while already, and it’s time to sit down and take a hard look at the numbers. How do you use your money wisely and plan for the year? We’ve got a few ideas.
Start with a review
Do you ever sit down at the end of the month, look at your bank account and wonder where all the money went? Whether it’s your personal affinity for antique duck statues or your company’s revenue that you’re evaluating, it all starts with tracking expenses. Some adjustment during the year is inevitable, so take a close look and see what cost you more than expected, if any costs actually declined, and then evaluate whether those discrepancies from the budget are likely to continue into next year. I can’t overstate how important it is to be totally honest with yourself when you do this.
Don’t be short-sighted
When budgeting, you’ll be tempted to plan everything for the next year with no thought for time beyond. Delaying costs is one way to make the numbers work. But if you delay that website redesign, for example, the revenue loss might cost you more down the road than if you just made the sacrifice this year. A big part of the budgeting process should be carefully looking at what investments you need to make in talent, tools and maybe even office space. Taking the long view is never easy, but making those hard decisions is what separates companies with longevity from those that never make it.
Focus on priorities
There’s never going to be enough money for all your plans, so you need to look at your overall business goals and figure out what is most important to help you achieve them. You’ll want to zero in on a handful of key priorities and determine what resources you need to achieve them. You should consult with other leaders at the company to make sure you’re not forgetting anything.
Don’t skimp on marketing
A lot of Bureau members are in the digital marketing space, but that doesn’t mean you can cut corners on your own marketing. One survey of small businesses found that a whopping 94% plan to increase their marketing spending next year. One of the most cost-effective marketing tools is social media advertising. For most of us, that’s by far the best chance of getting reach beyond your local area. Other things to evaluate include staffing levels and the tools that are helping you track performance. Marketing is what helps your revenue grow and should be in that list of priorities.
Leave some wiggle room
As the old saying goes, everybody has a plan until they get punched in the face. Even the most meticulous, well-thought-out budget will need course adjustments throughout the year. You need to regularly review your spending based on where you expected it to be, then increase and decrease different areas. You should try not to have every dollar concretely committed when the year begins, knowing you will need some room to move things around. Flexibility is one of the most important parts of budgeting.
Money talk is always stressful, but the best way to handle it is to face it straight on, figure out what you can do (and can’t) and then exercise the discipline to follow the guidelines you set out.
I love the last couple months of the year as we look forward to spending time with loved ones and get ready for a fresh start. While developing a reliable budget isn’t easy, you’ll be thanking yourself several months down the road when you see there’s still money for that holiday party you were really wanting to plan.