We will produce a budget to serve as a road map to success, providing guidelines for department heads and general managers, as well as a cash-flow forecast for owners. With the Lizanatay Plan and the Turnaround Plan, this is also coupled with accountability to daily budgets. We can also produce a Pro Forma for a property not yet in operation though the use of market analysis, the consideration of local, moderately-fixed and variable costs, wage surveys, and our extensive operational experience.
A highly beneficial service we provide as a supplement to budgeting is our purchasing service in which we obtain the best pricing for the best products through constant price comparison, vendor relationships, volume discounts and leverage through the Lizanatay Alliance. By utilizing this practice, we are also able to track budget performance BEFORE money is actually spent. Coupling this budget with our purchasing service, Lizanatay can quickly identify potential variances and alert ownership. If required, we can suggest and train cost control methods. This early detection can mean the difference between success and failure.
It is common for inexperienced, and/or absentee owners to operate without a budget at all under the philosophy that one is not needed if you are trying to spend as little money as possible all the time. This does not work because there is no mean to set performance levels and cost controls in all areas of operation. Effectively monitoring the efficacy of those controls and practices on a daily basis is impossible without an established budget. Without a doubt, a business will always make more money with a budget than without.
It is also common for operationally competent managers to have no experience with budgeting. This is a shame because a manager like this is seriously handicapped in their managerial talent by limiting their ability to evaluate and correct the performance of their business practices.
A budget is like a road map. Without one, you may fully intend to be traveling to Los Angeles but may be on the road to New York. Let us help guide you.
Copyright 2011: Lizanatay Inc. Hotel Management Company. All rights reserved.
55 N Litchfield Rd.
Goodyear, AZ 85338