Budgeting for Growth

Ask any successful business owner, management professional, or CEO: what does it take to get my business to the next level? Invariably, these business pros will all advocate that the key factor to your business’ future growth is the ability to look forward and to plan ahead.

Planning forces the entrepreneur to adopt the following things that are essential for success:

Setting Sales Goals and Benchmarks for the upcoming year.
Taking a realistic inventory on your company's current resources.
Anticipating for future events.

In essence, you must budget for what is to come in the roads ahead. In the language of accounting, budgeting involves projecting what revenues and expense figures your business will face in the upcoming year.

Having the foresight to budget for future events will allow businesses to be flexible and will allow management to seize potential opportunities and tackle challenges. In today’s fast moving economy, the ability to be flexible and be adaptive is a must.

Budgeting Exercise

Instructions (Fill in all item highlighted in yellow): Download Budget-Forecasting Form

Fill in your projected sales for the upcoming year. Take into account seasonal fluctuations in the sales cycle depending on your industry and historical precedence.
Project what fixed and variable costs will incur in the upcoming year. These are resources that your enterprise must expend in order to generate business activity.
Determine depreciation of capital assets. Most capital assets depreciated at a rate of 20-30% per annum.
This budget worksheet will calculate net income each month for the upcoming year as well annual figures.

Happy Budgeting!