A 3% Budget Increase is a Timid Goal in a Business Environment Where Timidity/ Irresoluteness Loses

It is just past the start of a new financial year and many firms will have considered what the outcomes of this new year will bring. I will work with another 25 companies this year to assist them to do better than they have previously. One of my first questions is, ‘What is your firm’s Strategy and its goals. Most don’t have an articulated Strategy.

In many cases a 3% budget increase is the same as saying you don’t have a strategy. It is easier to come up with a 3% budget than to build a budget based on strategic goals.

Timidity is a losing proposition. Setting stretch goals requires that a firm is more driven to improve. I have heard a similar saying but, a 3% budget increase is the same as saying that next year, we are going to do what we did last year, but next year we will be worse off than this year, because next year we will be a year further along and no closer to the goals that we didn’t bother to set.

Create a Strategy in the next few weeks, set a budget that supports the strategy and ensure that this financial year is excellent.