Navigation Blog Book

This blog post discusses the different types of budgets commonly used by businesses and challenges the traditional view of budgets as a financial target. The author highlights four main types of budgets - incremental, activity-based, zero-based, and value proposition - and critiques their limitations. The post suggests that budgets should be viewed as a validation tool for the strategic planning process and as a navigation tool for achieving desired results. By integrating budgets into business planning and management reporting, they can contribute to great leadership and commercial success.

In a recent blog post, the author challenges the conventional wisdom that budgets are crucial for business success. After 25 years of experience, they have never encountered a business owner who credits their achievements to a budget. The author explains the four main types of budgets - incremental, activity-based, zero-based, and value proposition - and points out their limitations. They argue that budgets should be seen as a validation tool for strategic planning and a navigation tool to guide decision-making. By integrating budgets into the business planning process and considering both financial and non-financial targets, businesses can enhance their leadership and commercial success.

This blog post compares managing a business to driving a car, stating that just like when you learn to drive, running a business requires focus and concentration. The post emphasizes the importance of business planning and looking ahead to avoid obstacles that may arise. It suggests that rather than planning day by day or week by week, business owners should have clarity on their ultimate destination and the route to get there. Additionally, the article highlights the significance of tracking upstream information, such as client engagement and conversion rates, to drive the business better and faster. It also encourages developing a comprehensive financial dashboard and maintaining a cashflow forecast to ensure long-term success.