Episode 8: Can my Business Afford That?
“Have you ever in your business, thought to yourself, hmm, “Can I afford that in my business?” Well, let me tell you, if you have a dialed-in budget and a forecast, you will know at a moment’s notice whether or not you can afford that.”
Today we are throwing back to one of our favorite videos from 2022. The question so many business owners find themselves asking… “Can my Business Afford That?”
From deciding about a new hire to purchasing new supplies, you have probably asked yourself this question before. A structured budget and cash flow forecast can help you decide. But there is one piece of the puzzle that might be missing. Andrea reveals what that missing piece is.
What is the Missing Piece?
I know a lot of business owners, and you’re probably saying, “Hey, I have a budget, I have a forecast. I still don’t know if I can afford that.” Well, let me tell you what the missing piece is.
The missing piece is somebody on your financial team that is tracking how much you’ve spent and how much is left in each of your budget categories. As a business owner, you should have a financial team that you could shoot off a message to and immediately know if you have room in the budget.
The solution is at the beginning of the year you set with your financial team and with your CFO your revenue goals and your profit goals. Then your CFO says, Let me go and create a budget for you. We’ll review that together and we will set the budget for the year.
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