Companies spend months building a budget in January, then ignore it for the rest of the year. The speaker argues this defeats the point: budgeting should let you track whether your forecasts actually work and adjust when things change, like losing a major customer.
And the first is, it's shocking how many times— and so you talked about companies that don't have budgets. But also what I see that's so surprising is they'll do a big budgeting exercise at the start of the year. And then either something good happens or something bad happens in first quarter. And then they kind of never look at it again throughout the rest of the year. And I'll be like, how are we tracking against our forecasts on revenues or expenditures on marketing? Right. And they're like, oh, you know what? We lost a big customer in January. And so none of those are accurate anymore. We're not really working off those. And I'm like, the whole point of that exercise of budgeting was so that you could then see how good you are at keeping your finger on the pulse every month or every quarter so that you start to know how good are your systems at tracking and predicting these types of things.
How Can You Maximize Your Business Value Before Selling? with Randy Katz Video
