We all know what the budget is. However, we never go to details, why the budget is important for every business and for every single household. Do we really need to talk about it when trying to close a deal? I know that budget talks can cause many people to sweat. Some of them think that it is rude to talk about money, while others treat it as “sensitive information”. So, where actually is the truth? Let’s try to think about it and find out what the pros and the cons of budget talks are.
So, when it comes to a single household, we can call the budget as a plan of spending money. Such plan allows us to determine if we have enough money to do things, we need to buy or to do. Based on such information, we can prioritize our spending decisions and focus first on the most important things, that need to be done, like for example repayment of the loans and debts, or just our utility payments. Another thing is, that many people do not even realize that they spend more money than they earn. This can lead to a situation where our debt is growing fast and gets out of the control, to a point where we have to declare a bankruptcy. No one really wants to be in such situation, and the only solution to control our income and expenses, and to avoid financial problems is regular budgeting. You can also extend your budgeting into the future. This, on the other hand, will allow you to make realistic assumptions about your annual income and expenses, and plan for long term financial goals like making a renovation, buying a new car or a property, or starting your own business, and maybe even sooner retiring.
There is similar situation, when we think about a business. Using a budget helps us to make more educated and conscious financial decisions regarding our business and its future. In short, we can state that knowing your company’s or your prospect’s budget is crucial and necessary information to moving any project forward and achieving your goals. You have to remember, that such budgeting is an ongoing process and should be reviewed and reworked on regular basis. Such budget will also help you to evaluate the performance of your company in each fiscal year. Creating a successful and reliable budget is not a simple thing, however, there are available different software programs on the market, that will allow you to create really detailed budget. You will not have to guess anymore where your money goes, and most importantly, it will give you peace of mind and full control over company accounts.
As you can see there are many advantages of budgeting. It does not matter if you are a business owner, prospect or a household owner, budget talks always help you to determine your realistic financial situation and decide what goals can be achieved without getting into debts.
As a business owner or a contractor, you will meet many people that are just hesitant to talk about their budget. However, you have to educate them and tell them that budget talks will give both you and them many benefits. They just do not know how you price your work and what steps are involved in a project. They often await an estimate to start thinking about their budget, but you can help them to change the whole perspective, by presenting your past projects and their costs. They need to understand that their budget information will allow you to provide them with the best possible service and products. It is also very important for many customers, what value your company can deliver, what are the benefits, warranty and after-sales service. Such broad discussion will help your prospect to better understand a nature of the project and the need of budgeting in advance.
To summarize, we need to understand that budget is integral part of our life. It does not matter if we like to talk about our financial situation or not, but budgeting is the process necessary to maintain a healthy financial situation of our business or household. It is also critical part of any sales process and we have to have a conversation about prospect’s budget. Remember, that at the end of a day it will save us time and headache, and allows us to choose options we can really afford, and contractors can determine if they can work around customer’s budget. As you can see, budgeting provides us only with benefits and we all should be aware of this. So do not be afraid of budget talks anymore and make conscious decisions in your financial life.
If you have any experience regarding budgeting and budget talks and you would like to share them, please contact us at joboholic.ca@gmail.com and we can publish your opinion, text or article.
Our BC Business Portal allows you to post a request including your budget depending on the job that needs to be done. Visit us today at www.JoboHolic.ca and find a service provider who can work around your budget.
