Budget planning when everything will probably change: 5 questions to answer now

This has never happened to you, has it?  Your boss asks for next year’s budget and then says, with a mad gleam, “But you know of course that scenario A is likely to happen, and when it does, all bets are off!”

 With mergers and acquisitions, competitors emerging and market needs evolving, everything is always changing, regardless of your budget cycle.

Answer these five questions now to turn what might seem like a pointless spreadsheet exercise into a strategic coup for your team and the business story you own:

1.  What is your business strategy, and does your program budget align?

Consider your company’s business strategy for the next 12-18 months. Ask for time to interview your team’s executive to clarify where your company is going and why. What are the risk factors? What are the opportunities? Are your most critical programs aligned?

2. What is the primary driver of revenue growth?

If your company plans to grow through M&A activity, your brand story may need to blend in new capabilities, new audiences and new geographies.

If your company’s strategy is to grow through a land-and-expand approach, how well does your current story talk to existing customers?

If growth is focused on new customer acquisition, new product launches or new markets, does your story do a good job of introducing the company and the problems it solves for businesses that don’t know it?

3. What is the primary lever for controlling expenses? How well does the executive team understand the long-term nature of your marketing programs?

Some businesses react to lackluster sales or other unexpected downturns by slashing spending to protect the bottom line. For each priority project in your plan, make sure you’ve built a solid business case. Educate your executive sponsor about the long-term budget requirements and business impact of each priority program, and be sure to describe what might happen to the business if that program’s spending is cut.

4. How is your primary buyer persona changing?

Consider your key buyer personas. Research trends in their space. Narrow your focus to the top three or four trends and ask yourself how you should adapt your story. If you haven’t refreshed your story in the last 18 months, you’ll likely find opportunity to fine-tune.

5. How are your primary channels changing?

Finally, assess how your primary channels plan to change.  New programs? New pricing or purchasing models? Will the changes impact your activities? If your primary channel suddenly starts underperforming, what might you do to counteract that? How can you build that flexibility into your budget?

 If you think like a CEO about storytelling and the ways in which it supports the business strategy, you’ve gone a long way to protecting your budget from the many things that are likely to change. If you’d like an outside perspective on how prep a budget that can withstand change, send an email to joan@discoveredbrand.com