Benefits of a Budget

One client's management thought they understood their revenue needs to cover their operating costs. But they, like many other young companies, did not have an explicit budget in place, and were not fully aware of just how much they were spending.

A budget is simply a plan with numbers. The first year a budget is put into place is a year of discovery. Many clients find they are underpricing their products, making life more difficult than it needs to be. Others find they are wasting money on supplies through sloppy operations. A detailed budget (and subsequent review of actual results against the budget) is the only way to determine whether your company is doing as well as you hoped it would - and give you the reasons it is or is not.

Often, clients will come to SMC with a vision of new business ventures. SMC works with them to develop economic models used to determine whether the projects will yield the anticipated results. This detailed planning has not only given a number of clients the confidence to open new retail locations and cultivate new product manufacturing relationships, it has also assisted them in obtaining financing for these ventures from a variety of sources from traditional banks to angel investors.

"I have used SMC Consulting Services for over 10 years. The most beneficial to my small business is SMC's cost analysis, employee performance plans and process improvements. SMC pointed out ways to reduce costs and boost revenue in realistic and creative ways. SMC is always available to answer my questions when implementing new strategies and how to effectively maximize results."

- Cynthia Porcelli, Principal, Genacelli Salon & The East Studio, Chicago