How to Create a Budget that's Focused on the Future

It's that time of year again. It's time to create your budget for 2008. Below are a few tips to assist you in making sure your budget is aligned for the future.

Technology
With the advent of the Podcasts, webinars, iPhones, etc., it's no surprise that technology should be at the forefront of your budget. If you aren't already, then you should start allocating on average ten percent of your budget each year towards new technology. This can be used for web development, new streamlined housekeeping/productivity software, or perhaps a new product that helps you better penetrate your market.

Extended Markets
Occasionally your board or senior management may make plans to market to an entirely new target audience next year, without allocating additional funds. As a general rule of thumb, new target markets require adding a minimum of 30 percent to your existing budget. If you are having trouble selling the idea to senior management or your board, show them real world examples of successes and failures to try to appropriate funding.

Benchmarking
If you're just starting your marketing efforts, or want to see how you are doing in correlation with peers in your industry, benchmark. Due your homework and find out what your peer groups are spending per customer. Better yet, find an organization that is doing well and use their sales figures as a benchmark. Above all, don't reinvent the wheel--look for a non-competitive company to ask what they are doing and if they have any tips for you.

Now you're ready to get started on your budget for 2008. Remember, if you need some great new marketing ideas, budget justification/research or help with next year's strategic plan, contact Avant Garde today!