Building a Budget for a Profitable Department Part 3

Building a Budget for a Profitable Department Part 3
By FIONA BLAYNEY

In Part 1 we started to look at how to build a profitable department, we took a look at our current position and planning. In Part 2 we took a look at Execution and Accountability.  Now we delve into the people component of setting a budget for a profitable department.

People

Achieving your business goals is as much about you as it is the people in your business.

You could not manage your business on your own, so why try to manage the most important aspect of it alone. In a team business, it is the team that together can build a profitable business.

I call this profit through empowerment. Empower your team to create a profitable business. Many business owners are sceptical about sharing the financials with the team. I hear comments like “oh if they know how much I make they will want more money”, they don’t need to know that, it’s not relevant to them”.

Guess what, this could not be further from the truth. Your team understand that you are in business to make money. Yes they in turn want to make money, but for many of them money is not their key driver and if it is, well my philosophy is the more the more. Additionally who wants to work for an under performing business? I have had some fantastic success on working with this principal alone.

Share the current business position and goals, as well as the individual’s goals. Use this in creating the plan, the plan to meet all goals.

Try this equation

GOAL - CURRENT POSITION = GAP

GAP X PEOPLE = PROFIT

Next blog we will wrap up this series on creating a budget for a profitable department with looking into how we can employ empowerment....