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Hi there! 👋

Managing your budget can often feel like juggling multiple balls at once.

You know how when a tightrope walker carries a balancing pole, each step must be calculated to avoid falling?

Your business finances are like that tightrope walker. And every expense, every department, and every project is another weight added to the pole.

And you probably have been struggling to keep balanced way too much.

Time to change that.

One thing is for sure. You won’t regain financial stability by hoping for it.

When restructuring your budget, you need to take control.

And the most effective way to do that is with Zero-Based Budgeting (ZBB).

It’s a strategy that forces you to justify every expense from scratch, rather than basing it on previous budgets.

But even if you’re just looking to optimize spending, ZBB can help you reset your financial priorities and maximize efficiency.

The concept is straightforward.

You have to challenge every assumption. You need to scrutinize every expense. Hard.

Start from a "zero base," and every function within an organization is analyzed for its needs and costs.

This means every department must justify every dollar spent, rather than just adding a percentage increase to last year's budget.

They might resist. But no department wants to face cuts. So you need to enforce this rigorously.

This isn’t the most enjoyable part of financial management. But it is necessary.

You have likely become too used to inflated budgets.

You’d be surprised how much unnecessary spending can be trimmed if every expense must be justified from the ground up.

I’ve managed over 30% OPEX cut using this approach.

You might not become the most popular person in the office, but it will make your business more financially sound.

You got to scrutinize every dollar.

Overspending time is over.

Have a great sunday.

Erik 

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