This week you learned about 4 types of operating budgets. The type you use depends on the nature of your organization and the goals you are pursuing. Reflect on the new Household retail business you just recently opened. Imagine you are producing a new product to sell in your store.
Create a 10- to 12-slide PowerPoint presentation with speaker notes and visuals that addresses the following:
- Briefly describe the product or service and the individual items you may need to fund to create it.
- Determine the type of operating budget to use if your major objective for the year is to significantly improve the value you are providing for your customers, employees, and stakeholders.
- Determine the type of operating budget to you use if your organization has become bureaucratic and needs a major restructuring based on a new direction you are pursuing.
- Assess the relationship between an operating budget and a financial statement.
- Estimate the amount of money you will need for the individual items required for launching your product or service. Determine where you will acquire this funding.
As your company grows and is ready to scale, you are likely to expand your business (new equipment, new locations, more employees, new products, etc.).
- Identify the items you may need to fund to scale your business to the next level.
- Determine where you will acquire the total amount of funding you identified above so you can scale your business to the next level.