Chapter of The MREA: Part Two – The Four Stages: Implementing the Models – Money
Managing your money can make the difference between Earn a Million and Net a Million. A critical factor in managing your money is your approach to your Economic Model and your Budget Model.
Sticking to the Budget Model and Controlling Your Costs
You don’t need to have formal accountancy training to manage your money. As Gary Keller puts it, all you’ll need is “a little know-how, some experience, and some discipline.” Your best avenue is to delegate most of your budgeting and economic planning to someone with experience, usually your sales manager or broker. Should you not yet have access to this person in your business’ growth, the next best option is to either take a short accountancy course or to consult someone in your professional network whom you can learn from. Once you know how to stay on top of your Budget Model and Economic Model, you need to practice controlling your costs regularly.
You must begin to implement budgeting models from day one so that when your business inevitably grows into a larger and larger operation, you are prepared to scale up your budgeting to meet your business requirements. By implementing your Budget Model straight away and staying consistent in your implementation, you will become an expert in budgeting as time goes by. Tracking your budget from early on will inform your business decisions throughout your growth. It will allow you to track and set ambitious goals to continue your development towards Net a Million.
Consistency is key. Set yearly, quarterly, monthly and weekly goals to track and stick to your required budget to make substantial profits. If you find you hit your limit, see if you can still succeed without certain expenses, and if you find you are well under budget, perhaps consider where you could invest that excess to generate more success.
Now we have dealt with how to get the most out of your money, next week’s KiloWatt will cover how you may be holding your business back.