Budgeting made….Handling with the….

Budgeting made…Easy (er)

If you don’t know where you’re going, you’ll still end up somewhere. The “where” is the question. When it comes to how 2025 will end up, we may or may not like the destination. But the chances of liking it are measurably better if we have a reasonable plan (budget) to get there.

That begins by assessing your current crop of customers and estimating what their purchases will be in the next year. Has their business this year been flat? If so, then figure on it is equaling that total in 2025. If it’s trending up, then assume it will be up by that amount in your plan.

Next, look at each of those customers and decide if you’ve left anything on the table. If so, decide specifically what new sales believe you can make to them. Then make your best guess of those new monthly purchases and decide (conservatively) what month you can realistically expect to make those new sales. And then add up those sales for the number of months they’ll contribute.

Now look at your prospect list and make your best estimate of which will be sold and when – and do the same math exercise you applied to those new additional sales to your existing customers.

Lastly consider what and when any price increase you might expect to take and apply that percentage to everything you’ve estimated in the previous steps. Add it all up and voila, you have a budget!

Handling with the…holiday hangover

The presents have all been opened and at least a few of the kid’s toys have somehow already become separated from their chargers. And you’re wondering just what you will ever do with that doodad your brother-in-law gave you. But the reality is it’s now three days after and you’ve still got some work to do while it’s still 2024.

While it’s about to be next year closing out this year’s business is still front and center. There are collections to be made and of course deliveries to replenish your customer’s inventories that were exhausted by all the Christmas luncheons and groups they hosted.

Regrettably that year-end clean up also includes gathering up the receipts and information necessary to prepare your taxes. The only good news there is that maybe you’ll have a refund coming. But whether you’re one of the fortunate few in that category, or you’ll be writing a check to Uncle Sam, you’ll still need to get the paperwork together to know which it is.