Most of the companies entering the operation stage are production and systematic companies, or most of them will enter the operation stage.

Just like Sun Tzu’s first chapter of the art of war, the counts victory those who don’t count will not win.

The budget is to calculate the account in advance, and have a clear sales plan, business plan and professional line matching corresponding preparation. Planning and stability are also the most important in production. Unsolicited nsolicited orders often interrupt the rhythm of the organization, and planned orders tend to be efficient and stable. At the beginning of the budget, we had psychological expectations. How much money can be earned has psychological expectations.

The business line also knows how much value to create with the money.

The functional line can also reduce the approval and give full authorization according to the budget control.

Business lines are often business units with independent accounting, which can turn large companies into small companies for management and greatly improve efficiency.

Because the budget of independent business units has become a transaction relationship, it is easier to quantify the evaluation of managers’ operating ability.

Budget management is profit=revenue – cost expense

Natural growth is income – cost expense=profit

Although it is the same content, the order is different and the underlying logic is completely different.

The bonus package and incentive plan can be made through the budget.

From value creation to value evaluation to value distribution.

The budget connects the whole logic of professionalism, function line and business line.