We are one month into 2023 when much of that new year’s motivation wanes. All of the excitement and declarations that 2023 will be the year your business reaches new levels of financial success (whatever that means for you) start to fade. Your goals may feel more daunting now that we are into the year and the day-to-day stresses are creeping in on all of the fantastic plans you set on January 1st, and it can be very easy to fall back into old financial habits. Let’s quickly check where everyone is at with their 2023 business budget.
Do You Have a 2023 Budget?
If you are reading this and thinking, “I have my 2023 budget created, and we are rocking,” then congratulations! This is not the article for you. Keep doing what you are doing! I am excited for your financial success!
If you are thinking, “I know, I need to get to that,” read on! This week’s article is for those who want a budget, but it keeps getting pushed to next week’s to-do list.
If you are a business owner who cannot sit down and think about your 2023 financial success plan, you may be dealing with more than just a busy schedule. You might be fighting procrastination, perfectionism, or a combination of both.
Procrastination is the habit of unnecessarily postponing projects, actions, or decisions. If you do not have your 2023 budget done because you keep procrastinating, it is time to figure out what is causing you to keep putting it off. There are a lot of reasons that procrastination is an issue; some of the most common are:
- You want to feel good now and kicking a project down the road gives some immediate relief, even though it will make things harder later. If you know that creating a 2023 budget will mean you need to make some tough decisions that will not be fun, it is no wonder that you would want to delay.
- You do not want to do it because it seems boring. Creating a budget is not on many people’s list of fun things to do; we get it! The reality is that successful businesses make financial planning a priority, so even if you are bored, it is essential to your long-term business health.
- Anxiety about the task is also a big reason for putting off business budgeting. The last three years have been rough for many businesses, and some had to take drastic measures. Whether that was cutting staff, using debt to stay afloat, or slashing services, there was a lot of financial unpleasantness for business owners. It is not surprising that dealing with finances causes anxiety.
- If your zone of genius is not financial management and planning for your business, then overwhelm might be the cause of your procrastination. This is the perfect reason to hire a financial partner, such as a virtual CFO, to assist you with these critical tasks.
- Perfectionism is a massive culprit in delaying action. Check out the section below to learn more about dealing with perfectionism.
- It can feel pointless if you do not have a strong why for a project. The task can feel worthwhile if you connect to your goals and how they will affect your business. This is why your goals should have a why. Why do you want to double your revenue? Why do you want to launch a new service? You need to have a reason aside from a number on a spreadsheet. Connect your goals to a tangible outcome for more motivation.
- It takes effort to do something differently, so putting off the task meant to change your future actions allows you to keep doing what you have been doing, which is the path of least resistance.
There are, of course, many more reasons why people procrastinate, but these are the big ones. So, if you can identify that you are procrastinating, how do you stop?
- Set goals and connect them to a why. It will be more motivating if you have a more significant reason for your actions.
- Determine why you are procrastinating. Are you scared, anxious, or overwhelmed, or is it something else? If you can identify why you are putting something off, you can deal with the underlying cause and move forward.
- Create a plan that directly deals with your procrastination habit. Look for tools and techniques that work for you and implement them.
For some people, procrastination comes from perfectionism, an entirely different issue that can be more difficult to overcome because it is impossible to be perfect.
Perfectionism is the belief that anything you do must be free of errors or mistakes. Many people are perfectionists in specific areas of their lives; when this bleeds into business, it can stall any progress. Some signs of business perfectionism are:
- Only start a task if you are sure you will execute it flawlessly.
- Taking much longer than needed to complete a task
- You see the result of a task or project is the most important
- You cannot consider a task or project done unless everything is perfect
If perfectionism is standing in the way of taking action on your 2023 financial planning or anything else in your business, there are some tips to help:
- Set achievable goals. Making your goals attainable will allow you to reach them instead of striving for unattainable perfection.
- Set time limits for tasks and stick to them. Often, projects will take as long as we allow, so give yourself a firm deadline.
- Avoid procrastination by focusing on the task instead of the end result. Break the task/project info into small, manageable steps you can move through one step at a time.
- Finally, remember that mistakes are inevitable and help you learn and grow.
Recognize the block and make a plan; whether you are dealing with procrastination, perfectionism, or something else, recognize what is blocking you and make a plan. Your business counts on you to make decisions and plan for the future.
Hire it Out for Financial Success
Get in touch if you would like some help to get closer to your financial goals! Our CFO services are available to business owners who need more assistance to get clear about where they are financially and a partner to help them reach their next financial milestone.
A VCFO saves you the money spent or unearned through the trial-and-error process of applying new concepts …and we do it quickly. A VCFO slingshots you forward on the business finance learning curve and applies the concepts in a way that increases revenue, decreases expense, and puts more profit in your pocket ASAP!
Not all change has to happen at the start of the year, month, or week. The best time to start using your 2023 budget is NOW! You will never have the perfect budget or follow it 100%, but that is totally normal! I would love to meet the business owner that created an ideal budget and followed it to perfection from January 1-December 31. If they exist, then their lives must be entirely predictable without unforeseen circumstances. That just doesn’t happen!
Here is to your financial success in 2023! No matter how imperfect it may look, it is still something to celebrate!