Real roadmap of the company for the coming year, the budget is the result of a collaborative exercise, involving the leader and key managers. Here’s how to carry out this vital discussion.

A boat could not go to sea without an itinerary, a map, weather data regularly … Similarly, a company must be based on the estimated budget to manage its business in the service of an overall objective predefined and business continuity plan.Thus Claude Duplaa, business strategy consultant at Panopticon, and speaker at Demos, training company, defines the usefulness of the budget. While at its inception, the company made a business plan, setting a course for several years, the annual budget can summarize the objectives and the means to take this course. It is therefore essential.On one hand, it sets a strategy for the next twelve months and on the other hand, this strategy translated into numbers and resources associated with it. The budget can be used for relations with potential investors or financial partners, such as banks,specialist advice and training.Above all, it will put into perspective the financial health of your business. “A good budget is coherent and ultimately rests on common sense. It should highlight in profitability, in terms of all indicators of the company.

Budget

ACTION

Add impact to your budget There’s no point to a budget if it’s good for the store in a drawer. “Should be checked at least quarterly and preferably monthly, the main indicators of the company, and compare to forecast.some investments. “If, however, your revenue exceeds your expectations, you can then certain expenditures planned” optional “,” says the accountant.

Set the ambition of the company

Generally, the budget of a small business is built on twelve months for the duration of the exercise. However, some companies are projected beyond.This applies to companies experiencing long periods of inertia and in which a decision years 1 to 1 strategic recruitment, for example – will have a major impact in year 2.So it is possible to build their budgets on two or three years. For Francis Xavier Simon, “ideally, the leader should open the file in September-October to finalize the end of December, when the exercise starts on 1 January.But it is also possible to reduce the time and do everything in December … The main thing is undo something! “First step: the definition of the goal.” This is for the entrepreneur and his associates, to summarize the ambition of the company for years to come. says accounting firm, the account of police and council.The definition of the objective reflects your market (competitive environment, customer needs, opportunities) but also cyclical phenomena (changes in the price of raw materials,shortage of labor,.) etc.You want to grow your business? The slogan will be growth.So you ask your teammates to step up their efforts to do so by imagining, for example, new products or prospecting for all hair. You prefer, however, remain cautious about a troubled market?Advocate the consolidation of the gains or reduced costs.explique-t-il. Sylvain Gautier, meanwhile, chose to focus on prudent to build the budget of Staff and Line, the software publishing company, which has 50 employees.”I build my budget in two steps: I begin by anticipating sales, together with the sales manager, then I look at spending, “said us.