My husband, John, and I are small business owners. It might be more accurate to say that the business owns us, but that's a conversation for another day. Like every small business owner we know, COVID-19 has hit us hard. We have already changed our business model, slashed prices, and done everything we can to provide services for free or at reduced costs. We did these things because we felt it was right to do so, and because we want to continue serving our clients. These were tactical changes, responding in the moment to unexpected, rapidly developing circumstances for our clients and target market. However, we knew we needed to take a step back from simple tactical reactions and look at longer term strategy.
So, recently John and I sat down to go over our family and business budgets. While it was a very sober conversation, there was less anxiety than either of us expected. At one point, we both commented that we felt strangely at peace. This was even more remarkable because previous budget meetings have not been characterized by peace! This time, there was no arguing. At times, we disagreed, but the disagreements were not emotional. We debated pros and cons cooperatively, and came to an agreement on changes. And the agreements were truly mutual--not one of us giving in to the other just to "keep the peace" while harboring resentment.
We started with the family budget, because that drives the business budget. We talked about how we could reduce expenses.We went through ever line item. We talked about what we could cut--and what really needs to be increased. Frankly, we were already operating with very little fat. We also set up three different columns for three different budget targets. Target 1 is our "bare bones" budget: how much do we need to make so we can continue to eat and live indoors? Target 2 is one level up: how much do we need to budget for things like car and home repairs, dentist visits and other irregular expenses that we need to expect even though we don't know when they will come up? Target 3 is what should be our "normal" budget, including fully-funded retirement savings, date nights at someplace other than Wendy's, and maybe even a vacation.
Something wonderful happened in the midst of this budgeting process. At one point, my husband paused the conversation, grabbed my hand and placed it with his on the computer screen. He voiced a heartfelt prayer that presented our budget to God and asked Him to provide for our needs. After his short prayer, he looked at me and said that doing this budget together felt obedient. For both of us, it was an act of faith to write down our needs and then bring them before God. "Many are the plans in a person's heart, but it is the LORD's purpose that prevails." (Proverbs 19:21 NIV)
Once we understood our family budget, we then turned to our business strategic plan. Understanding the three different personal income targets helped us to set some numeric goals for our business income--in stages rather than all at once. We also looked at our time budgets. Again, we were able to take this to God and ask for guidance and intervention.
You know what happened? Things started opening up. John recognized that he needed to prioritize some projects that he had put off. I focused my time on setting up systems, platforms and schedules that we sorely needed. By taking our specific needs and questions to God, we found the answers we needed. Both of us have been very focused on the work we need to do during this off-season caused by the Coronavirus. We've been more focused, purposeful and productive than expected. And that sense of peace has continued.
We don't know how everything is going to turn out. This Coronavirus Season is a real roller coaster! Yet, we are not stressed. We have a plan, and we are working the plan. That feels good, and is yielding measurable results that are good for our business and good for our family.
How about you? Do you have a plan? Do you need one? If this intrigues you, we encourage you to try it yourself! Here's how we did it:
1. Create or update your family budget with three Income Targets (columns), as explained above.
2. Pray over this budget. Ask God what He wants you to know about meeting your needs. You may sense He wants you to make some adjustments. You may have some creative ideas about things to do, or ways to invest your time. Pay attention to that still small voice.
3. Create your business strategic plan. This includes your business budget and how to invest your time. Ask God specific questions, and give Him time to answer.
This is an overview. A full Strategic Planning Process can fill a two-day retreat, and for quarterly updates we schedule half a day. In a short blog post, it's impossible to include a lot of detail, though I've tried to provide enough to give you the idea and get you started. The point is, get started! Simply doing a budget and prayerfully reviewing it can be very empowering. Give it a try!
Additional Resources:
Worksheet: The Nitty Gritty: Proactive Disciplines and Habits Worksheet in the WhiteStone Toolbox of Free Resources.
Book: Strategic Business Prayer and the Strategic Business Prayer Workbook.
For Strategic Planning Retreats and Intensives (yes, we do these online too), contact us at 407-605-2720 or Info@WhiteStonePros.com.