The budget is a mean and unruly nasty guest that comes every year and sometimes does not leave completed for weeks, even months. And, it is certainly not fun and engaging like a good game of baseball can be.
Alas, like all things, there is more than one way to look at the budget, and I did say “managing” in the title. So, let’s dig a little deeper and see what I am talking about. Much of life is how we choose to do battle and managing the budget in your hotel is no different.
To start with we need to unwrap the stiff that just arrived and realize the budget for what it is, a business plan with numbers. That is all and it is our job is to beat it at its own game.
Here is a strategy to follow to help you meet and exceed your annual budget
That being said you will never win all the games you play but with some creative strategies you are going to be better equipped to win more often.
The first thing to do is get comfortable with the basic rules of baseball and hotel budget making.
The number one basic rule is there are several innings in a baseball game, usually at least nine. The exact same can be said for the hotel financial/budget making world, except you have 12 innings to play.
That is 12 opportunities to win and, even if you lose some innings, you have the opportunity to catch up, especially if you fall behind in the earlier rounds. To bring this strategy to life, you need a system to follow.
It is important to highlight right here that in order to play this way we need to have a 1-2-3 financial strategy up and running in our hotel.
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One, do monthly financial statements using the accrual basis.
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Two, incorporate a current, detailed year-end monthly rolling forecast.
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Three and most important, include all department managers in the monthly forecast and reforecast process. Without their involvement and commitment, you are sunk.