A simple analysis can help keep your business’s key initiatives focused on your highest return area.
You have set the budget, agreed on initiatives and even have a long term plan. But how can you validate your company is on the right track?
People who are highly sensitive to the lack of flexibility of traditional budgeting often see rolling forecasts as the answer. If we update our view of the future more frequently and don’t confine it to the financial year it is obvious that this will be more useful than traditional annual budgets based on the financial year.
So, you might think, forecasts are like budgets but done more frequently – right?
How many times have you heard somebody say, “Banks only lend to companies who don’t need the money?” I have heard that comment frequently during my career. Now, with the benefit of hindsight, I realize it was those companies who valued their banking relationships and were always prepared to talk to the bank who received the funding. The first step in building a solid bank relationship is to value what a bank can mean for you. Many executives still view a bank as a vendor, selling money, rather than a partner, providing ideas and solutions to improve their business. If you have chosen your banker wisely they will have the experience, tools and contacts that can be invaluable to a business that doesn’t have an unlimited budget for consulting expertise.
If you still don’t think your banking relationship is critical here are some more reasons executives should maintain a good working relationship with their bank.
A budget done right is a roadmap to the future. Many new and growing businesses aren’t aware of how much detailed work is involved in preparing the data. It’s a lot of effort, but having an accurate plan for the coming year is essential to your company’s success.
Here are our top tips for making a budget that will work for you:
When AI Starts Making Decisions, Who’s in Control?
This edition of Gustavo’s Corner highlights a significant shift in AI moving from smarter models and more natural interactions to autonomous decision-making, persistent memory, and even physical manufacturing. Google and Meta are pushing the boundaries of AI capabilities, while TypeSafe AI and Atomic Machines demonstrate how AI could transform business processes and production. At the same time, Microsoft’s call for stronger safeguards reinforces the growing importance of security, control, and accountability as companies expand AI adoption.
