Budgeting. The mere mention of that word is enough to send chills down a pest management business leader’s spine. Most PMPs would wholeheartedly agree that financial management is certainly not the most exciting part of the job. However, effective budgeting is absolutely essential if you want your company to survive and thrive in today’s competitive business climate.
“A budget is a tool for planning and a guide for executing the plan,” explains Russ Ives, president of Rose Pest Solutions and immediate past president of NPMA. “It provides a framework for thinking about the year’s activities in a financial context, evaluating the cause and effect of the decisions we make, discerning when corrections may be necessary and helping to improve the basis for future decisions and success. The standard annual financial report is simply a historical report, whereas a financial report with budget comparisons is a management tool.”
In fact, studies show financial planning is critical to the success of every business. According to a survey commissioned by Palo Alto Software, 79 percent of companies with a business plan (including financial metrics) say they are better off financially compared to a year ago, while only a third of small businesses without a plan can claim the same. To top it off, the study shows the more often companies track their financials, the more likely they are to grow.
If you want to ensure the success and future growth of your pest management business, it’s essential to keep a close eye on your dollars. Here are five smart tips for effective budgeting.
By Amy Bell