Furthermore, being a manager often means being responsible for annual budgets. In this position, I experience first-hand the difficulties that many of my colleagues must face: after all, what is the best way to direct the financial resources coming from a company's budget? And, to make the issue even more specific, how is it possible to work efficiently with the 'budget surplus' at the end of the year? Is there a recipe to be followed to reach a balance point and assertiveness?
First, let's take a closer look at the issue of budgeting itself. Thinking metaphorically, we can see a budget as being similar to a bowling game: we have a few balls to use during the game. If we run out of whatsapp saudi arabia and haven't used them, they'll just be there, lost, and you might not have even knocked down enough pins to win the game. In fact, for a new game, new balls are needed; don't use the leftovers.
With the budget, we have a similar situation. Either we invest or we may lose the chance to work with that capital: opportunities may disappear, new needs may arise and what could be directed to a certain area of a company ends up being left aside or used in another sector of the company. And here is perhaps the biggest reason for doubts when planning the budget, knowing that each opportunity may be unique and investments need to be accurate and have clear impacts.
Yes, because just like in the public sector, budgets are not accumulated, and that is precisely where one of the most complex tasks a manager can have lies: the selection of investments and expenses must be extremely thorough and based on strategic criteria, aiming at business growth. But how can one be judicious and fair when all areas of the company need something and the demand, at least in the vast majority of cases, is greater than the company's "pot of coins"? Here, it is necessary to find a balance, in addition to having a good peripheral vision of the company's entire scenario. Only then is it possible to plan and distribute resources well.
Furthermore, reinforcing the idea I presented at the beginning, at this time of year, many companies can count on a budget surplus, an issue that only increases the responsibility of the manager, who must now think about the best investment to be made with the surplus. This happens because, among other factors, throughout the year, with more or less crisis, the tendency of the Brazilian market has been to restrain spending, a factor that tends to generate a capital surplus, which, in turn, can be invested to improve the business.
And what is the result of this equation? The truth is that, in just over 1 or 2 months, managers are bombarded with requests from the most diverse areas of a company. Therefore, it is natural that they have to seek assertive and quick decision-making in order to correctly distribute the business's budgetary resources. The dynamism of the market and the tendency to reduce expenses mean that managers must weigh up every single factor so that the calculation can be made. It is also essential that they are aware of the needs of each sector so that each request is taken into account assertively.
And what is the best way to make these investments? There is no universal formula or model for answering, but in my experience, I recommend that the focus of resource distribution be on sectors, teams and innovations capable of generating clear efficiency for a business. For each company, it is important to emphasize that efficiency may be related to a specific theme or sector. Therefore, it is important that each manager knows the business and the needs of each sector very well, so that distribution happens quickly.
Efficiency obviously does not mean just saving money. Many companies, for example, cut advertising or sales expenses at the end of the year because they have no sales. But this may be a hasty move, after all, who is going to generate sales and capital for the business if these operations are not carried out in a qualified manner? Each decision needs to be thought out taking into account the needs of the entire year in question, and not just that specific period.
Another step I recommend is that the priorities for choosing budget lines are linked to investments and expenses that will bring demonstrably better results, whether in process improvement, automation, increased production capacity, people, etc. This includes investments, for example, in technology or new devices that will have a direct impact on increasing productivity. The fact is that the investment should be made in a way that directly impacts the company's performance and, consequently, its race against the competition and its prominent position in the market.