Budget Interview

Interview with Barry Prettyman, Cole Surveying Inc.

1. What are your three main budgeting concerns? I worry about making sure I can pay all of my suppliers and get the equipment that I need to run my business.  I also worry about making payroll and covering quarterly taxes.

2. What does your budget cover? Supplies, payroll, equipment, utilities/rent, travel, taxes, and consultation fees

3. What is your budget range? It depends upon the month.  In the winter my budget is much smaller and tighter than in the summer.  Also, it really depends upon the year.  The last few years have been tight due to the poor economy and housing market.  This year has been the best year out of the last five.

4. How often do you make your budget? I sit with my financial advisor at least twice a year to make sure I am doing what I need to do for my taxes.  Then, I meet quarterly with my business partner to make sure we have the same budget goals. 

5. What is your profit margin? It depends upon the season and the year.  Anywhere between 20-40%.  Sometimes more, sometimes less.

6. What is your biggest expenditure after employees? Equipment.  Survey equipment is very expensive, over $100,000 for one device, plus computers, printers, copiers (large size), etc  I run a small business so I don't have a lot of employees.  My crew truck is also expensive to maintain and run. 

I learned about how budget concerns can vary depending on the business.  This owner was more concerned with meeting his equipment budget than with payroll expenditures. He also runs a very seasonal business with his income fluctuating wildly between each season and year to year.  I think that there are some healthcare facilities that operate in the same manner.  It is important for leaders to be able to understand budgets from multiple points of view to ensure good leadership.