In an interesting embarrassment for McDonald’s, a story just broke showing how out of touch the franchise mega-chain is with the current conditions of their employees.
Following a previous, ongoing scandal regarding the McDonald’s use of fee-laden, prepaid cards as salary in Pennsylvania, the company is now under fire for a site it created in conjunction with Visa to help its low-paid workers. The site, which sought to help the workers create and manage their budget, was quickly torn apart by critics because it contained numerous embarrassing misestimates and misconceptions of real life. What sort of misconceptions? Well for starters, the sample budget provided appears to pre-suppose that the average employee works almost 80 hours a week based on the amount of money earned, far more than the average employee could be expected to work. Then there’s the fact that McDonald’s seems to think that health insurance costs $20 a month, a laughably low figure for most people. Or you may have noticed that, for some reason, there is no heating bill. Yes it’s currently summer, but the sample budget seems to ignore that heating will be a major cost come winter and might throw the entire budget off.
What Can Your Business Learn From McDonald’s Budget Blunder?
The company has made a major though surprisingly common mistake — underestimating unexpected costs. Lots of small businesses have cash flow problems stemming from a lack of proper budgeting. Take time to go through all your previous expenditures to get a better idea of how much you spend in an average month. Then, prepare for the unexpected.
See, the biggest issue with cash flow is that business owners only prepare for what they can predict. But business is unpredictable, and if you need more inventory or have to make repairs, that money is going to have to come from somewhere. Start building up a rainy day fund to cushion your business from sudden demands. A merchant cash advance is a popular method for giving businesses that flexibility, and you can find out more about them by clicking here.