Do you have a budget to guide your expenditure and reinvestment decisions? To avoid the nervousness that comes with questioning your financial decisions, it’s important to have a good budget management system.
In this episode of The Agency Blueprint, we discuss how to master the art and strategy of creating and managing different types of budgets. We share our typical budget cycles and how we manage budget adjustments to handle explosive growth or revenue.
Don’t miss the episode to learn more about the ideal frequency for a budget update and the benefits of the top-down approach to budgeting.
Key Questions:
- [01:23] What typical cycles do we suggest in updating, solidifying, and reviewing financial budgets?
- [04:23] How do you approach the top-down and the bottom-up routes in budgeting?
- [11:35] What mistakes do you see in overinvestment and underinvestment when looking at agency financials?
What You’ll Discover:
- [01:36] We share our typical budget cycles and how we manage adjustments to handle growth.
- [02:53] Get out of the place where you’re consistently changing your budget, plus the ideal frequency for a budget update.
- [04:39] The advantages of the top-down approach and what makes it better than the bottom-up approach.
- [08:03] Factors to consider when building a budget and forecasting explosive growth or revenue.
- [09:40] The importance of investing part of your revenue in your team and the agency’s growth.
- [11:44] How to master the art and strategy of creating different types of budgets.
- [14:40] The importance of understanding the difference between what you planned and what happened and where things went right and wrong.
- [15:50] The importance of tracking your profit and loss numbers to review and reflect on your budgets.
