When is the best time to make a business budget?
I like to start planning in Q4 of my business year for the upcoming year. For most business who are on a calendar year, November is a great time. If your business operates on a fiscal year, then the month before the last month of your business year.
As a business coach, November is the month I coach my clients to start working on their Profit Plan for the coming year, which includes their Financial Plan, Hiring Plan and Marketing Plan. Its before the holiday rush and after the busiest season for many home improvement contractor businesses.
It’s a good idea to work through a vision and goal setting process first so you can be clear on where you want to go and how you want to grow in the next year.
I also suggest reviewing and reflecting on the current year that is nearly over to evaluate how your business performed in comparison to the goals you set a year ago.
Armed with that information, you can now embark on your planning and budgeting process for the coming year.
If you’ve missed doing your planning by the end of the year, the next best time is the very beginning of the year on which you are embarking. But, by doing your planning before the end of the current year, you can hit the ground running right after the new year with your plan in place.
For more information on budgeting and profit planning, download my Profit Planning Guide here.
