Business Idea and its Budget!

Entrepreneurial life is based on a business idea that should always be aimed at our ability to respond to a market need. 

Companies and/or businesses, whether developed individually or collectively, always have one factor that sets them apart: the ability to be and do something different from the competition. 

Can you have two different Companies that are exactly the same? 

The answer to this question lies in the individuality that each entrepreneur puts at the service of their business. The Portuguese market is dominated by small companies, where the corporate brand is often confused with the personal and individual brand of the entrepreneur. 

In financial and operational terms, companies should base their activity on an objective business plan which defines the company's different activities and proposals for at least three future financial years. 

This business plan is made up of a set of substantive and descriptive information, which naturally has to be translated into figures. Businesses and companies don't survive with just an idea, but with a sustained plan in which every aspect is analysed. 

The financial translation of the activity plan is done in the activity budget, which describes the different resources that will be needed for the activity. This budget must be carefully constructed, based on historical information and always with an eye to the future, defining the objectives that the company intends to achieve. 

It is important for the budget to include all the costs and income projected for a specific period, in the most descriptive way possible, so that they can be measured and read in the context of the activity carried out. 

But the budget also has an evaluation moment that makes it important in terms of its ability to measure and correct activities in order to guarantee the objectives that the company set itself when it defined it.

Every year, when launching or moving, we should always try to prepare for the future of our company and/or business. We will be closer to guaranteeing success if we prepare in advance.

Good budgets with objectives guarantee good execution!