Generic selectors
Exact matches only
Search in title
Search in content
Post Type Selectors
Search Products
Filter by Categories
Company Secretarial
General Business
General Interest
Investing in Property
Personal Growth
Personal Wealth
Trusts and Estate Planning

How do you get from where you are at to where you want to be?

First off, you find out where you are at. You can’t get to Capetown unless you know that you’re starting from Poffadder.

Then you choose your route. If it’s complicated, you’ll write it down, or have Google Maps or Waze spell it out for you.

Then you start out on the journey. Do you check occasionally to ensure that you’re still on track? I think that would be a good idea, don’t you?

What happens if you take a wrong turn? Well, if you’re using a nav app, it will recognise that you’re off course and recalculate the route to ensure that you still reach your destination.

That’s how budgets work for you in business. You use the previous year to establish where you are at. You decide where you want to be (financially) in a year’s time and you then map out how you will get there. This is all done in Excel and your accountant (in house or external) can build the model, but with your practical input.

You start out on the year’s journey and each month you check whether you’re where you planned to be. If you’re off course, you then take corrective action to get you back on track.

There are two important aspects to this budgetting approach –

1) Preparing a budget forces you to think about things that you might otherwise not apply your mind to, like “How am I going to increase turnover?”, “How am I going to handle the extra business without ballooning our salaries bill?” and

2) a budget gives you a measure against which to compare actual performance so that when you go off course, you know that you’re off course!


XHTML: You can use these tags: <a href="" title=""> <abbr title=""> <acronym title=""> <b> <blockquote cite=""> <cite> <code> <del datetime=""> <em> <i> <q cite=""> <s> <strike> <strong>

Looking for even more informative content? Check out the books I have written which have proved to be very popular.

Need help with your Trust or Business?

Contact us today or set up a free meeting with our CEO, Derek Springett. We have been offering expert advice and business services since 1971. You can also view see our full list of services.

Do you want to leave your cart?

Your cart is awaiting your next purchase, so please proceed to the Home page and continue shopping. If you are leaving your cart because of problems, why not give us a call on our 24 hr numbers 063 866 8928 or 011 805 0030 (subject to load shedding)? If all else fails, call Derek, our CEO on 082 552 9696. We’ll do what we can to help