At its best, a budget is a financial modeling tool to set up expectations for the upcoming year; created properly, it is a built-in barometer of not only financial performance but also acts as a scorecard of your team on many variables.
At RevMax, we believe a budget is a financial projection of the opportunities, aspirations and operational efficiency of your properties as well as the capabilities of your management team. The budget should be the primary driver for the plan ahead, a tangible reflection of the vision and strategy.
Due to the pressures of time and resources, it is common to encounter one or more of the following situations related to budgets:
- They may not be formally prepared
- They may not have engaged all the stakeholders in the derivation
- Formatting of the information may not be intuitive to the stakeholders
- Accountability and performance tracking may not be part of a regular process.
- Many stakeholders, such as department heads, may not be able to clearly recognize the connection between the budget figures and their operational procedures.
A well-prepared budget plus the full engagement of your General Manager, Sales team and Department Heads, are all essential components of a team aiming to achieve a pre-defined performance level.
RevMax Hospitality can help:
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