Budgeting: An Important Part of Running a Business

Marla Noel explains why budgeting is not just a finance exercise but a core business discipline for cash flow, decision-making, and growth planning. She walks through how to build a practical budget from real historical data, how to account for revenue, expenses, salaries, and cost of sales, and why the process should start early enough for leadership review before the new year. In this solo episode, Marla focuses on one main topic: building a realistic annual budget that helps a business avoid cash shortfalls and stay aligned with its goals. The guidance is especially useful for owners and leaders who need a budget that is detailed enough to use, but flexible enough to reflect real-world changes.

Key topics

• Marla explains why budgeting should begin in September and be finished in November so leadership can review it before January.
• She frames budgeting as a tool for cash control, target-setting, and decision-making, not just a spreadsheet task.
• Revenue should be budgeted line by line based on business type, whether services billed by volume or products sold by unit.
• She stresses using last year’s numbers as a starting point but not copying totals without understanding what drove them.
• Any projected revenue increase should have a reason, such as price increases, new salespeople, new services, or a new division.
• Expenses should be estimated using a 12-month view, with unusual one-time costs excluded unless they are expected to recur.
• Cost of sales belongs below revenue and should include direct costs tied to production or delivery.
• She warns that revenue growth can strain cash flow if customer payments lag behind payroll and other obligations.
• Marla recommends building cash reserves equal to six months of administrative expenses as protection against disruption.
• Budget assumptions should be documented in the spreadsheet so anyone reviewing it can understand the reasoning behind the numbers.
• She says the finished budget should be reviewed by the CEO and, if applicable, the board before the fiscal year begins.

Timestamps

(0:28) Why budgeting matters and what this episode covers
(1:27) Cash flow, targets, and the danger of running out of money
(2:19) Why budgets are estimates, not perfect predictions
(3:20) Starting with revenue by business type
(4:17) Justifying revenue growth with real strategy
(5:11) Using prior-year data to estimate expenses
(6:06) Handling unusual expenses and separate salary planning
(7:30) How seasonality affects revenue and cash flow
(8:25) Accounting for inflation and rising business costs
(8:54) Linking aggressive growth goals to staffing needs
(9:53) Why Marla recommends six months of cash reserves
(10:53) Calculating cost of sales for product businesses
(11:50) Separating direct costs from administrative expenses
(14:18) Comparing against prior-year numbers and reviewing the draft
(15:43) Aligning the budget with profitability and business goals
(16:42) Capturing assumptions inside the spreadsheet
(17:35) Sharing budgeting responsibility with department heads

Action Items

• Start the budgeting process early, ideally in September.
• Use prior-year financials as the foundation for next year’s budget.
• Write down the assumptions behind every major revenue and expense estimate.
• Separate salary planning from the rest of the budget if that makes the process clearer.
• Check whether projected growth is supported by staffing, pricing, and operations.
• Review the draft budget with leadership before the fiscal year starts.
• Build or protect cash reserves, especially for administrative expenses.

Patricia and Marla talk about Patricia's firm and how she created a business she enjoys with the people she appreciates and the clients she cares about.

Years ago, Patricia decided to buck the system and go with what feels right when creating a business that she enjoys. Part time, remote, clients via zoom and a heartfelt caring for both employees and clients.

• She works the way she wants to work and wants to help people understand why they must plan in advance for the inevitable, start young and prepare and decide how you want your world and your estate to look like.
• We delve into the importance of hiring a coach and working with a business group like WPO, Women Presidents Organization to work on the business versus in the business.
• Patricia has a few business books she recommends, and podcasts are her time to enjoy.

KPIs are supposed to improve performance—

Marla Noel breaks down how to build KPIs that actually motivate people, align with strategy, and help you grow without turning measurement into a morale problem.

For business owners and department leaders, this episode cuts through the KPI noise and gets practical fast. Marla shares why the first number is often just an estimate, why employee buy-in matters more than perfection, and how one client went from aiming for 45 outreach touches to landing on a realistic 28 after the team defined what “outreach” actually meant. You’ll discover:

• How to introduce KPIs without triggering fear or resistance
• Why leading indicators often matter more than lagging results
• How to choose the right KPI count so everything important does not become nothing important
• What it means for KPIs to align from the company level down to managers and employees
• How to build a follow-up system so KPIs do not become “the flavor of the month”

Marla also shares practical examples for sales, client outreach, blog posts, contracts, gross margin, and net profit, plus the difference between stretch goals and numbers that are simply unrealistic.

If you’ve ever struggled to get your team to care about metrics, or worried that your KPIs are measuring the wrong things, this conversation gives you a clear path forward. She also points you to two helpful resources: Measure What Matters by John Doerr and Drama Free Management, by Marla Noel and Pete Fowler, which includes a KPI template you can use with your staff.

The big takeaway is simple: KPIs should drive focus, accountability, and growth—not confusion, fear, or box-checking. Perfect for founders, managers, and leaders who want measurement systems that people will actually use and trust.

Timestamps

00:28 – Why KPIs matter for business owners and managers
01:05 – How KPIs can scare employees if handled poorly
01:35 – Using a trusted business coach to introduce KPIs
02:05 – Starting with estimates when the right number is unknown
03:05 – Examples of financial and activity-based KPIs
03:39 – Defining what counts as outreach before setting the target
04:39 – Why 45 was too high and 28 became the stretch goal
05:39 – Leading KPIs vs. lagging KPIs
06:39 – Why leading indicators are more actionable
07:32 – Lagging metrics like sales, billable hours, and signed contracts
08:02 – Why three to five KPIs is usually enough
08:32 – Aligning KPIs with business strategy
09:32 – Why follow-up keeps KPIs from becoming a fad
10:14 – Monthly reporting, spreadsheets, and KPI software
11:14 – Reviewing KPIs with executives and employees
11:44 – Books Marla recommends for KPI planning
12:39 – Marla’s recap: keep KPIs useful, focused, and motivating

Kyra Hokanson Gray, president and owner of Hokanson Vascular, shares insights into the company's history, her personal journey, and the challenges of business management. From the early days of the company's founding to the impact of her father's death.

Kyra's story is one of resilience, leadership, and dedication to work-life balance. The conversation covers a range of topics including challenges in personnel management, dealing with workplace issues, managing business sensitivities, coping with personal loss and business continuity, building relationships with customers, the value of peer advisory groups, Women Presidents' Orgaization, the impact of grief on decision making, passion for music and involvement in Meany Center, hobbies and personal interests, and future plans and exciting opportunities.

Takeaways

• Resilience in the face of unexpected challenges
• Cross training and how it helped the business survive.
• The importance of work-life balance and personnel management in business.
• The value of trusting your employees to do the job they were hired to do. Trust but Verfy.
• Effective personnel management is a significant challenge in business operations.
• Coping with personal loss and maintaining business continuity requires resilience and determination.

Chapters

• 00:00 Introduction to Hokanson Vascular
• 03:31 Early Life and Company History
• 10:23 Transition and Leadership
• 17:13 Challenges and Business Management
• 23:51 Work-Life Balance and Personal Reflection
• 29:33 Global Impact and Personnel Management
• 31:44 Challenges in Personnel Management
• 32:09 Dealing with Workplace Issues
• 33:06 Managing Business Sensitivities
• 35:20 Coping with Personal Loss and Business Continuity
• 34:06 Building Relationships with Customers
• 42:09 The Value of Peer Advisory Groups
• 37:46 The Impact of Grief on Decision Making
• 48:55 Passion for Music and Involvement in Meany Center
• 53:07 Hobbies and Personal Interests
• 56:34 Future Plans and Exciting Opportunities

Sarah Henry, the second-generation owner of Gaspars Construction, shares her journey of leading a woman-owned residential remodeling company and the challenges she faced.

She discusses her passion for people, the impact of her family background, and the importance of finding the right people for the team.

The conversation covers a range of topics, including leadership, WPO membership, personal passions, and the importance of structure in business. The discussion also delves into the significance of strategic planning and the impact of public speaking.

Takeaways

• Family background and values influence business leadership
• Challenges of running a business in a male-dominated industry Leadership and the responsibility of leading vs. following
• Recommendations for business books and podcasts
• The value of WPO membership and its impact on business
• Personal passions and the importance of structure in business
• The significance of strategic planning and the impact of public speaking

Chapters

• 00:00 The Journey of Gaspars Construction
• 02:19 Motivation to Join the Family Business
• 03:31 Childhood and Early Influences
• 04:20 Career Path and Business Ownership
• 08:19 Dealing with Sexism in the Industry
• 10:38 The Concept of Final Usie
• 11:30 Positive Impact on Company Growth
• 17:46 Regrets and Tough Business Decisions
• 14:40 Business Management and Work-Life Balance
• 22:04 Challenges of Business Growth
• 24:07 Leadership and Responsibility
• 24:35 Business Books and Recommendations
• 25:13 WPO Membership and Impact
• 30:32 Personal Passions and Structure in Business
• 37:13 Strategic Planning and Public Speaking

Meghan Lynch, CEO of Six Point Strategy, shares her journey from mentorship to leadership, emphasizing the value of curiosity, learning, and stewardship.

She discusses the impact of family values, mentorship, and the importance of being present in both business and personal life. Meghan also reflects on the lessons learned from mistakes and the value of taking improv classes for personal growth and business success.

Meghan Lynch shares insights on self-care, leadership, business books, and the podcast she created with her son, Building Unbreakable Brands. She also discusses the importance of brand strategy and the value of WPO in her business journey. Additionally, she talks about her future plans and personal interests.

Takeaways

• Mentorship Succession
• Curiosity and Learning
• Stewardship and Leadership
• Being Present
• Lessons from Mistakes
• Personal Growth and Business Success Self-care is essential for stretching out of your comfort zone.
• Brand strategy is about reputation and trust.
• WPO provides valuable support and guidance for business owners.
• Family business centers play a crucial role in addressing generational challenges.

Chapters

• 00:00 From Mentorship to Leadership
• 02:10 Family Values and Mentorship
• 03:48 Lessons from Childhood
• 05:16 Impact of Mentors
• 06:10 Learning and Curiosity
• 07:34 Business Education and Growth
• 20:00 Discipline and Time Management
• 22:27 Work-Life Balance and Personal Growth
• 25:30 Reflections on Mistakes
• 28:54 Unconventional Business Advice
• 29:51 Self-Care and Leadership
• 31:14 Leadership and Connecting People
• 32:47 Business Books and Podcasts
• 36:19 Family Business Centers and Generational Branding
• 43:49 WPO Support and Future Plans
• 50:05 Personal Interests and Conclusion

Mikaela Kiner, founder and CEO of Reverb, shares the candid story of leaving big corporations to craft a purpose-driven, people-first company that prioritizes work-life harmony. Her journey reveals unexpected lessons about leadership, boundary-setting, and building a culture where everyone thrives—not just survives.

This episode is perfect for entrepreneurs hungry for practical strategies to foster workplace kindness, craft a sustainable business, and leave a lasting positive impact on your team and yourself.

Show Notes

Embracing Purpose and Flexibility in Leadership with Mikaela Kiner

Discover how Mikaela Kiner transitioned from corporate HR to founding Reverb, a company dedicated to creating inclusive cultures, and explore her insights on leadership, and understanding the true purpose behind her business.

In this episode, you will learn:

• Mikaela’s motivation to leave corporate HR for entrepreneurship rooted in seeking authenticity and balance
• The importance of setting clear boundaries and values for sustainable success
• Strategies Mikaela uses for effective delegation and leadership development
• The benefits of cultivating community through retreats and peer groups like WPO

Timestamps:

00:00 - Introducing Mikaela Kiner: leadership, purpose, and organizational culture
02:02 - Mikaela’s journey from corporate HR to entrepreneurship
05:16 - What fuels Mikaela’s fire to be an entrepreneur
09:02 - Reassessing self-criticism through mentorship insights
10:16 - Building a strong team and professional network
14:09 - Business management disciplines and hiring strategies
15:53 - The challenge and ease of delegation
16:47 - Achieving and maintaining work-life balance
20:09 - Regrets in business and lessons learned
21:35 - Setting boundaries and living by core values
22:32 - How Mikaela’s team perceives her as a boss
26:42 - Essential leadership and management books
28:47 - The value of peer groups such as WPO
31:47 - The value of roundtable discussions for peer support
33:50 - Surfing in Costa Rica: a hobby that fosters mindfulness

Resources & Links:

• Female Firebrands by Mikaela Kiner
• Reverb - Creating Inclusive Cultures
• The Leadership Pipeline by Ram Charan
• Multipliers by Liz Wiseman
• The Art of Gathering by Priya Parker
• WPO - Women Presidents' Organization
• Costa Rica Travel Guide

Connect with Mikaela Kiner:

• LinkedIn
• Twitter

The conversation with Divyata Rajaram covers her entrepreneurial journey; motivation to start a business; childhood and early influences; career aspirations; working with a spouse in business; challenges and successes in entrepreneurship; authorship and its impact on business; global business expansion; business management disciplines; and work-life balance and wellness.

Divyata shares insights into her experiences and the intersection of creativity, business, and personal well-being. The conversation covers topics such as leadership, emotional intelligence, creating a happy work environment, challenges of entrepreneurship, agility in small businesses, strategic thinking, long-term vision, benefits of WPO membership, opportunities for women entrepreneurs in Dubai, and promoting literature and cultural advocacy.

Takeaways

• Entrepreneurial Journey
• Global Business Expansion Emotional intelligence
• Agility in small businesses

Chapters

• 00:00 Introduction to Divyata Rajaram
• 05:15 Childhood and Early Influences
• 11:40 Working with a Spouse in Business
• 19:45 Impact of Creativity on Business
• 26:31 Business Management Disciplines
• 32:41 Leadership and Emotional Intelligence
• 38:26 Strategic Thinking and Long-Term Vision
• 46:29 Opportunities for Women Entrepreneurs in Dubai