Develop and Implement a Growth Budget(2 / 2)

Bydevelopingagrowthbudget,managersknowwhatresourcesareavailableforprojectsthatwillgeneraterevenuegrowth.Thegrowthbudgeteffectivelysetsouttheplanbywhichtheorganizationintendstofindgrowth,howitproposestofundthatsearchandwhenthoseadditionalrevenueswillcomeonstream.Inotherwords,agoodgrowthbudgetwillcoordinateacompany'seffortstoincreasesalesrevenues.

■Fundingsourcesforgrowthprojects

Resourcesthataretakenfromshrinkingproductlinesandreallocatedtogrowingproductlines

Resourcesthataretakenfromdivisionsthatarelosingmarketshareandreallocatedtodivisionsthatareincreasingtheirmarketshare

Reallocatingmoneythathasbeenassignedtoabroadgeneralizedfunctionlikeresearchanddevelopmenttospecificgrowthprojects

Whenadecisionismadetoincreasetheamountofmoneyanorganizationspendsinordertotrytogainadditionalrevenues,evenifthatimpactsnegativelyonshort-termfinancialperformance.