"All wealth is based upon systems." - Dan Kennedy
Everything that doesn’t fall into the Marketing, Sales or Product Delivery categories we class as ‘ADMIN’.
If you’ve been in business for more than five years, you’ll understand better than anyone that our economy experiences periods of ‘boom’ and sometimes periods of ‘bust’.
In the times of boom we all tend to be better off - sales and profits are generally much higher across the board. At the same time there are high levels of employment and school leavers find it easy to get work with good prospects.
However, history shows that the good times do not last for ever, and this is when periods of weakening demand occur for most goods and services. This can then turn into a slump when there is rapidly growing unemployment and sales and profits fall substantially.
The end of the first decade of the 21st century will be remembered as a period of rapid bust – don’t we know it!? During this time, many people lost their jobs and leading banks and retail outlets went out of business. These periods of bust are variable, and won’t last forever. Fortunately, forecasters look for signs of ‘green shoots’ which indicate that a recovery is taking place. The ‘green shoots’ can include new businesses setting up, development of new products and higher employment.
The key to riding out the tough times is to be prepared for anything by keeping track of your admin.
When you join our next 90 Day Business Challenge, you will be creating a budget for your business. Just to refresh your minds, your budget is a statement that sets out the planned performance of your business typically in a table made up of numbers. This is an important aspect of understanding the capability of your business.
Typically your budget will deal with money units, but they can also consist of other measurable units e.g. units of output. We will help you creat a budget that will enable you to plan ahead and then to check on your performance against budgeted figures by way of variances. A ‘variance’ is an important management tool because it enables you to manage your business effectively, ie. to take informed decisions based on management information (i.e. how actual performance compares with budgeted performance).
Variables can be favourable or unfavourable and when you join our 90 Day Business Challenge, our experts will help you learn, create and apply the most important administrative report in your business – a budget. We are right here with ideas, experience, market research or anything else which helps you prepare for the unexpected and manage risk in your business.