Now the holidays are over it is time to start preparing for the new financial year.
Forecasting revenues allows you to consider your pipeline and determine what costs and resources will be needed to deliver on client demand.
If you sell goods, you can determine sales quantities, stock levels and negotiate improved terms with suppliers. If you sell services you can determine what resources will be needed and how to provide those services either from internal staff or through outsourcing. Budgeting expected overheads allows you to determine if you have the best deal in place, or if you can switch suppliers and save money.
Formulating a budget not only allows you to estimate revenues, expenses and potential profits, it enables you to consider how to drive your business forward and set targets, identify growth strategies, determine funding requirements and detect unnecessary overspends.
Your budget for 2014 is key not only for you to determine short-term sales & profits, it stimulates thoughts and ideas to drive your business forward.