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Why you need to get your budget ready for 2022

September 28, 2021 -  By
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It’s that time again: time to start looking ahead and planning for next year. The budgeting process is a key step in planning for the year ahead. It helps your team understand your goals, align around a common vision for the future and lay the groundwork for a successful year. Budgeting can be daunting, but it doesn’t have to be.

(Photo: Jirapong Manustrong / iStock / Getty Images Plus)

(Photo: Jirapong Manustrong / iStock / Getty Images Plus)

We follow a simple four-week schedule to make budgeting a little less overwhelming:

Week 1: Get your thoughts and high-level goals on paper and discuss them with your leadership team. There are no bad ideas in this meeting: talk about the ideal sales mix, gross profit and net profit you’d like to see.

Week 2: Share the results of Week 1 with division leaders, and ask them what resources they would need to reach those goals. What will they need as far as equipment, team members, materials, and other resources to be able to reach the goals you set.

Week 3: Have open conversations with your team about the plans and make adjustments if anything now seems unrealistic. If your goal is to grow by 30 percent, remember that might mean you need to hire 30 percent more team members and purchase 30 percent more trucks and equipment.

Week 4: Finalize your budget and share it with your team. Make sure you include what’s in it for them if you do hit your budgets: profit sharing, bonuses, pay raises, or promotions.

The biggest challenge landscape pros faced this year was finding labor, and that’s likely going to be our biggest challenge next year too. While setting your budget, account for any plans or changes you’ll make to address it next year: are you going to have to raise wages to find the team members you need? Will you need to raise prices to cover the cost increase? These are all conversations to have now so that you’re ready for 2022.

If you’d like inspiration on what’s possible for your business in 2022, I encourage you to sign up for one of our upcoming Grunder Landscaping Co. Field Trips. We have space available in October, November, and December. During this event, we go into detail about how we’re planning for growth and setting budgets for sales, purchases, and labor to meet our goals.

Agree on a plan, work your plan, and you’ll be on your way to getting to where you want to go in 2022. Have a great week and, as always, if we can help you at The Grow Group, drop us a line at grow@growgroupinc.com.

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