There is a lot of conversation at present on the subject of well-being reporting and indeed budgeting.
So what is a well-being business report?
Put very simply, a well-being report looks at a whole range of measures, both financial and non-financial. A well-being report will establish a “line in the sand” and then compare movements (both favourable and unfavourable)
Well Being budgets are currently mostly be talked about at a macro level, specifically at central government level and local government level
Well-being reporting and budgeting however should also be applied at individual business level and can be so powerful to help the business owner move forward
So what could an initial well-being budget look like? What would some of the key measures look like:
- Financial Position including profitability
- Amount of profit leaking out of the business
- Availability of cash in the business
- Business Value
- Amount of time spent working both in and on the business
- Amount of time spent travelling and to place of business (work)
- Amount of quality spent with your partner / family
- Conversion rate of quotes to sales invoice
- Market perception and position of business
- Staff retention rates
- Staff recruitment rates
- Environmental impact of the business
- Charitable donations
- Service and contribution to society
- Love of the business
- Achieving the ultimate dream
Each of the measures specified above could be assessed individually but the end objective would be to come up with an overall well being assessment
For example, an “A+” assessment would indicate that everything in and around the business is perfect.
On the other hand, a “F-" assessment would indicate that there is considerable room for improvement.
In reality, no business is ever perfect. The business world is constantly improving and evolving. The business owner needs to keep their business ahead of the time whilst ensuring it is contributing to their own wellbeing and to the family
The initial well-being report will establish a benchmark against which future improvements) both financial and non-financial) can be measured
It is no good just hoping that future improvements will be achieved. There needs to be a budget with specific milestones and accountabilities. This will take you and your business from its current position to the desired location over the desired period.