Rory sat at his desk, an adding machine with paper tape streaming down to the floor.
“What’s up?” I said, trying to break his concentration.
“Oh, man. I have to put a budget together. I’ve never had to do this before. I don’t even know where to start.”
“Where does any plan start?” I asked.
“In class, you said we should always start with vision, painting a vivid picture of the future, but this is a budget. This is all numbers.” Rory was bordering on whining.
“You still start at the same place,” I said. “The first step is visualization. You have to imagine all the colorful detail, the smell of the room, the focus of light, the heat of the moment. It is only when you have a very clear picture of the future that you will remember all of the detail for all the things that need to go into the budget.”
The wheels were already turning. I was losing Rory in his own imagination. His eyes were tracing images of this picture inside his mind.
“The more detail in your vision, the more likely you will imagine the resources required to create that picture.” I backed out of the room. Rory was on his way.
After being in business for more than 35 years without a budgeting process, we began budgeting last year. I had my doubts going into the process, but now I actually LOVE it! I even love doing my own part of the budget. It is fantastic to know in advance how much money you can spend on “nice to haves but not necessary” and how to prserve cash for “must haves”. So to anyone who hasn’t used budgeting yet, I offer my experience as encouragement!
Cathy,
You bring us to an important insight. Without a budget, it is extremely difficult to make management decisions. Without a budget, it is difficult to manage risk or take advantage of opportunities.