Madam CEO Dr Esther Muchemi, the GCEO (Group Chief Executive Officer) and founder of Samchi Group has taken a moment to share with us a golden piece of advice on the importance of Budgeting.
Countries do budgets annually.
Big institutions do budgets as well.
Some SMEs, I guess, do budgets too.
Individuals and families who are organised do budgets too.
Let’s agree that this is very good practice.
A practice that should be adopted by every business, big or small.
In simple terms, budgeting , just means putting down your expected revenues for the year and bringing in the planned expenses against the revenue.
The difference allows you to see the deficit or excess at this planning stage.
Depending on what it shows, excess or deficit, you are able to adjust and focus on results before they become a reality.
For example, if there is a deficit, you can plan on how to increase the revenues or reduce the costs to enable you live within your means.
You could as well decide to borrow to cover the shortage, not a very good option, if what we hear of our country’s borrowing is anything to go by!
As we approach the end of the year, I would encourage us to start planning and budgeting for next year.
Things may not be looking so rosy, but with a budget, you may just be able to make it through.
Being conscious of a matter is better than going blindly into it!
These are my thoughts this morning.