Don't forget your business forecasting fundamentals. A budget is an educated guess and a management tool. It is a business forecast. Keep the budget process in perspective. You are making a series of educated guesses. If it makes you feel better, remind your audience how you came up with your projections in your Web plan. For this same reason, it is important to review your budget throughout the year and make adjustments when necessary.
One of the best ways to create your budget may be to build your projections on the previous year’s performance. If you have this information, the foundation is in place. Look at trends and expectations in each area and modify these numbers based on your expectations for the upcoming year. Look at industry performance and trends and take those factors into consideration. Once you get to the bottom line, ask yourself if it is realistic, or if you need to go back and modify revenues or expenses to more closely capture what you expect to happen in the year ahead.
