Perhaps the biggest question you may be asking yourself as you prepare a budget for the financial year ahead.
Some of you would have already finished the process because you follow the calendar year. But if you follow the financial year, you may be just starting.
After all the news about the vaccines and its adoption, you may be optimistic. However new variants of the virus seem to be threatening any form of early recovery.
So in this unknown times, let us explore some themes that may provide you with incremental revenue and improve your topline and bottomline.
In case you do not have a budget template to make a budget, you can buy this easy to use template to help you with your budget.
When things are rapidly changing as they seem to be, discuss with your owners about the possibility of making a quarterly budget. I agree that it means you will spend more time on making a budget but you can be more realistic.
Many hotels make a 3 month revenue forecast any way. Ask your finance controller to make an expense forecast as well.
This will also help you plan for and get to you EBITDA.
With a shorter timeline, you can react effectively to news as they come in, plan to hire employees as and when the business picks up, spend on repairs and maintenance appropriately.
Execute to plan
A revenue making idea is only as good as the execution. With a year in COVID induced lockdowns, you may have tried many ideas.
Evaluate what worked and what did not and focus your efforts on what gave you the maximum business result.
Was it your focus on weddings, outdoor catering and delivery, office space rentals that worked for you?
How can you improve and expand on the offering. Ghost kitchen and cloud kitchen are trending concepts.
Does it work for your hotel?
Your return to normalcy will also depend on your location and what can you do.
While making the budget, think of all these factors and stretch departments that can and reduce dependence on others.
Even in January 2021, there are many things out of your control. But as in the past year, work on things that you can.
- Improve your revenue by executing to plan.
- Train and multi task your team . Keep expenses low
- Think quarterly not yearly