The A to Z of Profit Growth – B is for ‘Budget’

The A to Z of Profit Growth – B is for ‘Budget’

– Hi, it’s Kim with your second edition in our Profit Growth advice series. B is for Budget. A budget is a control mechanism that helps you focus on everything from sales right down to the bottom line, and will keep you focused on success. You should see your budget
as an accurate prediction of what your business will
make in terms of profits, if you achieve the desired sales. It should be challenging, but also realistic at the same time. It helps you to monitor
your actual performance and spot problems, meaning
you can take corrective action before it’s too late. And don’t just set one budget and expect it to last the
lifespan of your business. They need to be revisited
annually at the very least, to reflect changes in
your business fortunes, and work really well with the
quarterly forecasting process. Keep your budget in line with
the growth of your business to maximize profit. Good luck.

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