Budgeting Trends and Tips  

Shane Austerman

COO & CFO 

Stamats Communications

With career experience leading finance groups in manufacturing, service, banking and B2B media, Shane has developed a successful perspective on budgeting considerations. Here are some of the insights he shared during last month’s MediaGrowth Excellorator Executive Interview.

At Stamats, budgeting decisions are driven by the long-term value proposition that the organization is creating and offering. The Stamats team implements a rolling 3-year strategic plan that defines its niche(s) and works to connect what is happening now with what the team wants to happen, as well as with what may need to happen in 3 years.

• Key players that are driving the organization (not just executive management) are involved in and contributing to the budgeting process. Those who “have the ear” of multiple people across the company are included to help drive buy-in.
• All stakeholders know their connection to the mission and why decisions are made – why money is being spent over there instead of here. Informed and engaged employees will run through walls.  Uninformed, unengaged employees won’t.
• Revenue comes first. Meetings are conducted regularly with unit managers and salespeople to estimate future revenue and to ask questions like, What parts of the market are we missing right now?  What will it take to move in those directions?  What in-house or third-party resources will be required?

• At the corporate level, along with core business, competition, and market trend considerations, long range revenue targets also include the evaluation of old “cash cows” that may be weakening. 
• Stamats’ salesforce is very experienced, but Shane says that companies with junior salespeople should invest to help them understand where the market is heading so they have the best talking points to move them from being a product pusher to a consultant.
• Reforecasting must happen more often now than was necessary a few years ago.  Annual ad spend contracts have become quarterly commitments. Economic fears have created a cash preservation mentality in many marketers. Rapid technology changes require companies to be nimble.

• Stamats uses tools to make sure that their actuals are flowing into forecasting records immediately. "We always have a quick snapshot of where we're at.”
• Planning for “unforeseeable events” is not possible, but companies need to expect that there are going to be some. This falls into the category of:  What type of cash reserves or borrowing capabilities do we have to protect ourselves?
• Remember that even what we call fixed costs are variable in the long run. As a remote work culture seems to be sticking in the B2B media world, office space funds are being transferred to other areas.

For information and insights on other B2B media leadership topics, check out MediaGrowth Excellorator

2023 © Simonsen Sales & Marketing, LLC.