Several weeks ago I typed about the purchase of our Paragould office as well as some new equipment for Cherokee Village. We are now a month out and reality has set in. I’m glad that Britney Spears won out a couple of months back, but now Dave Ramsey is roaring back in and I’m feeling the weight of the new debt with which we have encumbered ourselves. On top of this, we are now investigating offering health insurance to our employees.
It’s appropriate that we are entering deer season as I can relate to how they must feel right now. That corn on the ground looks inviting, but how did it get there? Is it a windfall or my last supper? That grass in the pasture sure looks inviting, but do I want to expose myself whatever predator is out there just to enjoy it? In a similar way I wonder about the opportunities I have “signed up for.” Were they really the juicy nugget I saw them as, or the straw that broke the camel’s back? While I’m helping to provide a need for my patients and my employees, am I exposing myself to financial harm? I can almost sense what those Jews on the day of Pentecost must have felt when they cried out “what shall we do?”
This is where the teachings of Dave comes racing back into my mind. “If you are running your business from your profit and loss statement, you are running it by looking in your rear view mirror.” If you want to look out the front windshield, you need to have a budget. ACK!!! I actually typed that. That’s scarier than most of the costumes and haunted houses from a few weeks ago. In all seriousness it is a daunting thing to make a budget, especially when you own several offices. But as I’ve learned, it is even more scary to run a business without knowing where you are going. As I contemplate health care and as I look to pay for the office and equipment, I realize that the only way to be confident in the outcome is to make a roadmap so that I know I will make it.
As I finally accept this (nods to Anne and Mary who have requested this for some time) I’ve begun the process by looking at last years profit & loss and balance sheets. From this I will learn where I’ve come from. I understand the things I cannot change (rent, licenses, utilities, etc) and the things I can (cost of goods, inventory, wages, advertising). I’ll also get a feel for income related to last year (are we improving, staying the same, or declining). From those predictions and changes, I should get a clear idea of how much money we need to generate each month to cover the expenses and debt that we’ve incurred. Sounds simple, right? Well, from my experience with personal budgeting, I realize that this is a never ending commitment to achieve what I need. Tweaks are a constant reminder that I will not get everything right. I know it has made a tremendous impact on my personal finance and I hope this will carry over to the business as I begin to implement this.
I know it will make an impact in your personal life as well if you haven’t been doing it. A budget can be scary, but if you do it and continue to do it, relief and confidence are the rewards. Britney is ok, but most times you need a little Dave.