I always get anxious in August. There’s no real need for it now, but this month always triggers a survival instinct deep inside my psyche. Why? In my previous corporate jobs, August was when we would start the budgeting and planning process for the following year. As a young manager, I had mixed feelings every time this process began, ranging from “But wait, this year isn’t over!” to “Holy sh*t, are we just going to throw darts and make stuff up for next year?”
The former was true—we had to make educated estimates with only seven months’ worth of data. The latter, however, was just naïve panic. In reality, we weren’t throwing darts; we had seven months of data that were already showing trends. Plus, we had historical data detailing years of patterns, competitive analyses giving us direction, and market insights to help us make projections. We also had a clear understanding of our goals. We knew our strengths and had a good idea of where our opportunities lay. Our self-awareness also helped us identify our weaknesses and threats.
So, even though it was only August, it was actually ... and still is... the perfect time to start the budgeting process. Here’s why:
1. Timing: The months will fly by. One day you’ll be wishing your friends and neighbors a Happy July 4th (which we already have), and it will seem like the next day you’re wishing them a Happy Thanksgiving (which we will soon enough). Starting your planning and budget and planning process in August ensures that you give your organization time to analyze data from all angles, make decisions, and then revise them. It also allows you to explore new opportunities as ideas—not missions just yet. More importantly, looking this far ahead will allow you to assess your weaknesses and challenges.
2. Strategic Planning: Starting in August gives your team the space to think strategically rather than reactively. By laying out your budget early, you can align your financial goals with your overall business strategy. This allows you to allocate resources to areas that will drive growth, rather than simply maintaining the status quo.
3. Competitive Edge: Getting ahead of the budget process can provide a significant competitive advantage. When your competitors are scrambling to finalize their plans and budgets at the last minute, your organization will already be executing well-thought-out strategies. This can give you the upper hand in seizing market opportunities and adapting to changes.
4. Flexibility for Adjustments: Starting early also provides the flexibility to make adjustments as new information becomes available. If market conditions change or new opportunities arise, you’ll have the time and resources to pivot without derailing your entire strategy.
5. Stress Reduction: By starting this process in August, you can reduce the last-minute stress that often accompanies budgeting and planning. Your team will have ample time to gather data, consult with stakeholders, and finalize numbers, leading to a smoother and more thoughtful budgeting process.
In conclusion, starting your budget and planning process in August is not just about staying ahead—it's about being strategic, gaining a competitive edge, and reducing stress for you and your team. At Envision Marketing Consultants, we believe this is the foundation for successful marketing strategies that drive growth. Try it for your business and see if you agree.
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