Using your operational budget as a guide, conduct a budget analysis and determine three potential areas or aspects of your business that could receive cuts to reduce spending. These cuts m
- Using your operational budget as a guide, conduct a budget analysis and determine three potential areas or aspects of your business that could receive cuts to reduce spending. These cuts may be broad (e.g., an overall staff reduction of X%) or targeted (e.g., switching from expensive oak to much cheaper pine for the production of skateboards).
- You must identify three potential cuts that can be made. There are almost always multiple opportunities for budget cuts in any organization.
- For inspiration, research recent spending cuts in your market sector. What are other companies cutting spending for? Why?
- Using the information from your budget analysis, generate three separate budgets that account for these proposed cuts. Which saves the most money? Which makes the most sense for your business?
- Gather all three budgets into a single document for submission.
- Be prepared to explain and support your decisions in class or in the Budget Analysis Discussion Board.
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