August 26, 2010

Yesterday, we started with some hopefully helpful tips to get you through budget season.
Today, we focus on expenses.

• Set aside three hours with your business manager --where you won't be interrupted.
• Go through every single line item and ask lots of questions
• Classify each line item three ways for 2011 budget
• Increase (how much)
• Static (continuing at same level)
• Decrease (possible deduction or cut)
• Estimate new totals and get a rough cut of expense line totals
• Examine operational efficiencies that you can create to cut expense
• Review every single contract you have:
• Vendors: everything from cleaning to power
• Talent:  know when every contract comes up and what is likely outcome of negotiations
• Barter:  if you are like us, that hits our expense line.  What do you really need in 2011
• Examine promotion (both sales and programming) and research
• What do you really, REALLY, need?

Tomorrow, we'll look at budget planning....