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I was texting with a friend of mine the other day. I had asked him how he was doing. He responded:
Over worked, under paid! Beat up and burnt out!! Same as it ever was! Same as it ever was!”
At one time or another, many people feel that way.
I know that I have! You can’t let that keep you down, though. Just because the feelings come, doesn’t mean we have to keep and claim them. You have to recognize that as a red flag and look at what caused it, so you know how to avoid it in the future.
One of the ways that we avoid that in our business lives is by planning and creating a budget. Creating a budget is good for you, if you do it properly, because it allows you to take a longer look at what is going on in your business. It gives you an opportunity to think through more than just the tasks that are directly in front of you. It can also help you put money into your pocket.
How?
- Planning prompts questions. Questions like: Should I buy this new (or additional) equipment now or should I wait? Why?
- Questions prompt changes. You might examine a situation like this: Every year we go to the tax man to find out how much we owe. Then we scrape together the funds we can and pay partial or pay late. Then we pay penalty and interest on the unpaid balance.” A money saving change could be as simple as budgeting (and setting aside) funds for your income taxes so you have the money in the bank by the time your taxes are due!
- Changes can save you money. As in the above scenario, the money you save immediately would be the IRS penalty and interest you’ve had to pay in the past. For some businesses, this is quite a savings! This doesn’t just apply to your tax bill. By analyzing and adjusting the way you do business, you can save a lot of money.
Don’t assume that because you have always done something a certain way, that it is the best way to do it. Often the original reason for something we do is forgotten and may not apply anymore. I am reminded of the story of the Grandmother who cut the ends off her roasts so they would fit into the pan. Her daughter and grand-daughter continued the tradition without examining the reason until someone asked they why they did that. They had to ask the Grandmother and found out it didn’t apply to them!
Always be examining your business procedures looking for improvements. Preparing your annual budget is a great time to do it!