Get your business budgeting under control before you try and sell
Don’t make the mistake of relegating business budgeting to the back burner as you prepare to sell your business. If it something you have always had under control, then you will see the positive impact of budgeting as you approach sale time.
And if business budgeting is something you have let slip, it is important to get it into good shape before exposing your business to the market place.
Accurate budget reporting helps a buyer see the shape of your business
Although business budgeting is more of an internal process than more overt ‘sale’ oriented tools such as profit reporting and KPI reporting it can still be a helpful way for a prospective buyer to see the state of your business.
Greater business value is the most positive impact of budgeting
As you put effective business budgeting in place you will be able to quickly see areas of weakness in your business. Decision making becomes more effective as you gain more accurate understanding of how your business is performing.
You can then implement changes in key areas such as growth strategy and be well placed to have a good understanding of where you are placed when it comes to business valuation.
Take the slog factor out of business budgeting
Many small businesses struggle with budgets because they:
What most business owners fail to implement is a process that builds budgeting into management decision making. A budget should represent the yardstick that you measure your performance against.
- Don’t have an effective system in place to use them.
- Don’t have the information available to generate them.
The business budgeting process should:
- Identify the key business parameters that should be measured and recorded
- Relate the performance of the business to the key parameters
- Involve the key people responsible for each parameter
- Set realistic targets for each parameter
- Report the budget to the people who are responsible
- Measure and communicate performance against budget on a routine basis
- Identify actions to meet and exceed budgets
Easy to use processes and spreadsheets to help with your budgeting
Budgeting is often not implemented because business owners lack a structured system for developing and reviewing budgets. Maxell Consulting has developed a process that can help a business keep control of:
Using simple spreadsheets and structured procedures, we can help you develop your systems so that budget information is available, accurate and useful.
- Management Systems Review
- Budget Setting
- Budget Reporting Systems
Make effective management decisions based on knowledge. Implement the yardsticks and systems you need to get control of your business performance.
Get your business in good shape for the scrutiny process that is part of selling.