Time and money are the two things that help a business succeed. Both are in short supply. Planning helps with time management. Budgeting helps with controlling costs.
A budget can be thought of as the plan in numbers. If we know where we are going and what we need to do to get there, we should be able to work out what it will cost.
For every vital task there needs to be some thought as to whether a financial cost applies. Or ask if a budget for the task was assigned, could that task be done more quickly or to a higher standard? This is important to think about. If you can guarantee success by spending money, that isn’t a risk any more.
It is very easy when budgeting to make an educated guess. This is fine for some things in the budget. Get in touch with possible suppliers though and you can get an estimate of costs. The more estimates you have in a budget the more accurate that budget will be.
Finally, there is always room for some contingency. This ensures that there is money available to react to the unexpected. It also means that a project is more likely to come in under budget. Both help towards business success!