Budgeting for 2020: What to Consider
With the end of the year rapidly approaching, it’s not too early for facility managers to begin planning their budgets for next year. What are your strategies and goals? Do you have a proper preventative maintenance plan in place? What should be top on your list when deciding where to spend your money in 2020?
As you prepare your facility’s 2020 budget, here are 7 tips that will ensure your building will continue to look good, function well and be safe in the New Year:
- Plan for routine care. Determine your fixed costs, such as your cleaning service, landscaper, grounds keeper, and any other vendors whose services you contract on a regular basis. Historical data for routine maintenance costs will help you plan for the future. But keep in mind that fees may increase in 2020. If you have access to pricing from vendors for products or services for the year ahead, budget those as fixed costs
- Include preventative maintenance. Basic maintenance can only do so much. Carpets, floors, painted walls and furniture will all show wear and tear eventually. Having a proper preventative maintenance plan in place is one of the easiest and most effective ways to reduce not only inevitable expenses but also the risk of unforeseen expenditures, such as equipment or HVAC failure, that can completely tank your budget.
- Determine long-term expenditures. What projects or improvements can you anticipate within the next five years that will affect your 2020 budget? Will you be making any changes to your physical workplace? Will you be purchasing any new equipment or furniture? Are you planning to replace carpets, refinish floors, install new windows or upgrade your HVAC, heating or ventilation systems? Anything outside the normal scope of routine maintenance is going to increase your costs. Planning for these long-term expenditures will ensure your budget is inclusive and comprehensive.
- Prioritize maintenance by type of building. What you include in your budget is greatly determined by the type of building you manage. For example, does your building only house employees, or does it welcome clients on a daily basis? If it’s client-facing, you’ll want to make sure you prioritize areas such as the lobby and reception area over less visible areas of the building. If it houses only employees, you might want to pay more attention to employee lunchrooms, break rooms and conference rooms. Of course health care facilities, medical office buildings and schools are also unique in their maintenance requirements and budgets for these facilities should reflect their unique needs.
- Consider one-off and seasonal costs. Breaking down costs on a monthly, quarterly and annual basis will help highlight overlooked costs, such as seasonal maintenance. For example, landscaping and grounds keeping costs may be higher in the summer, but snow and ice removal will be a winter cost. Do you need new equipment or does your current equipment need maintenance? Now is the time to prepare for inclement weather. Perhaps you’d like to redo your landscaping in the spring. That would be a one-time seasonal cost to consider and include in your budget.
- Don’t forget the “little things”. It may seem trivial and obvious, but the “little things”, such as buying light bulbs, can have a big impact on your budget. Maybe it’s time to consider switching to energy-saving LEDs or researching a more efficient lighting solution.
- Build in a buffer. Although taking the time to plan ahead is definitely the best way to stay within your budget, unforeseen costs can make even the best planning take a nosedive. Building a buffer into your budget for miscellaneous expenses will give you some wiggle room if you should need it.
It’s not too early to start planning your budget for 2020! If you take the time now to budget well and responsibly account for long-term and unforeseen expenditures, you will be well prepared for the fiscal year ahead. At 4M, we are always looking for ways to help you keep the cleanest, healthiest and safest facility possible, all while helping you stay on budget. It’s just another way we deliver the best, innovative and safe cleaning solutions for your business CLICK HERE to learn more.