Budget Interview

The person interviewed is the owner and operator at Animal Health Center, LLC. His name is Shawn Sanders. His wife is my friend.

1. Do you use a software program for your budget. If so, what program? No we don’t use a software program for a budget. We use Quickbooks to keep track, but nothing for budget.
2. If there isn’t adequate funding, what are the first 3 things you cut out of your budget? We haven’t had to cut, but if we did it would be new equipment or capital improvements, advertising, and charitable donations
3. How would you handle a project that was running over budget? As of yet, that hasn’t been applicable.
4. How do you handle unexpected expenses? We keep a reserve or savings for unexpected expenses.
5. When a budget decision has to be made, who gets together to make the decision? Usually the main owner, sometimes the spouse.
6. If you are under budget on a project, what happens with the money? Savings, improvements
7. What is your biggest budget expense? Pharmaceuticals/ operating supplies
8. Do you usually stay within your budget for the year? Yes, except we don’t have a budget
9. Have you ever had to cut employees for over staffing or to make up for budget cuts? No
10. How much of the budget goes to medical coverage for employees? Is it worth offering? Would you consider good health initiatives for employees using coverage? Less this year verses last due to increased insurance costs caused employees to use the market place for decreased insurance. This year, less than 1%
    Health insurance is not worth it for most employees. No  initiatives. It doesn’t benefit the business.
11. How do you encourage employees to follow money saving protocols that may be tedious? Constantly give reminders in person and in staff meeting settings.
12. If you have to do layoffs because of lack of money, how do you decide who to layoff? We haven’t done any layoffs
13. Have you ever slacked on keeping a good budget? If so, what happened? We don’t keep a budget. But know what expenses are and know how much is needed.
14. What are the budgeting rules you live by, if any? Spend less than we make
15. Does someone else help you with budgeting? If so, how often do you follow up with them about the budget? No

From the interview I learned that it's important to be frugal and to understand what needs and wants are. It's important to understand what necessary expenses are and what can wait. It sounds like this company has been successful with their finances. I learned that health insurance is expensive for employers to purchase for their employees and sometimes they have to refer their employees to use the market place. It sounds like this company is good at saving money, which can be important for dry spells. It's important to have savings so you can avoid laying off employees and going into debt. They are also proactive in educating their staff to use money saving strategies. I think this is really important to encourage and implement. Though this company hasn't dealt with lay offs and having a strict budget, it sounds like they are doing well and must be doing something right to not of had to lay anyone off. I find this information helpful for my own personal life as well.