The actual sugar reserves at the beginning of the planned year are 370 tons. Then you will be ready for any events, because you have already predicted them. You will no longer fall into despair due to the fact that all the staff went on vacation, and you will have to take the rap for everyone, and there is no one to cover you: you will provide for this in the budget. You will no longer experience indescribable fear due to a sharp decline in volumes — pet sales because you produce umbrellas, and in August, you see pi, there is no demand for them: you will take this into account when drawing up the budget, and you will be ready for it. You will no longer wake up in a sweat in the middle of the night because there is not a dime left, and you still need to pay for the Christmas party: funds will be allocated for this, since this item is included in your budget. WHAT IS YOUR GOAL? Thus, the budget is a plan for the future, accurately, clearly and beautifully drawn up. The melody is perfect, you have arranged it with all the dedication and skill of an outstanding composer. But what is your goal? First of all, it is necessary to define the goal and formulate it as concretely as possible. There is little use in phrasing like, «My budget is a blueprint for what will happen in my department over the next 12 months.» Set yourself a destination that is definitely within your power to reach, but at the same time you know that it will take a lot of work. Dedicate yourself to budgeting and make sure your goal is achievable. It seems that these words cover everything that is possible, but what about the rally of dealers? Where is it said about it? Not a word. And it should. Good. But what about the cost of buying paper clips? A new copier? And what about additional staff during the pre-New Year rush? Wonderful. So, you can clarify your goal somewhat: «My budget is a realistic plan for the next 12 months, expressed in quantitative terms and characterizing the financial condition of the department.» That’s better. This is the plan. Now write it down. WHAT A BUDGET SHOULD BE When you’re making a budget, remember that it must be realistic or it’s pointless. Your budget needs to be realistic and believable, and you need to commit to it. If you have set a target sales volume of 1 000 units per month, then you will have to move mountains to achieve that goal. If you know deep down that you can sell no more than 600 pieces, then there is no point in planning more sales. If you also know that with some effort and inner urge you can sell about 1,400 pieces, then write it down in your budget.