Do you want to reduce your risk and remove some of the surprises that can occur?

Then create a budget!

Remember: Your budget needs to be realistic – not just a percentage increase on last year.

Operating Budget – Revenue

Start by:

• Assessing each line critically
• Mapping your revenue to see where, how and when the money is coming in to create a reliable estimate of your income for the coming year.

Look at what is required to generate that income. For example, what advertising, marketing and resources will be required?

Operating Budget – Expenses

• Be tough, but realistic on costs.
• Don’t forget to allow for growth and the increases that are likely to flow through

Once complete, do a couple of alternative estimates for your key revenue drivers so you understand the impact of changes to your assumptions.

Important tips:

• Track and measure it throughout the year
• Involve your management team to get buy in and responsibility for achieving the budget numbers they give you