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Talking Dollars & Making Sense: Mastering the Art of Budgeting for Entrepreneurs Sep 16, 2024 News Kaieteur News – In the world of entrepreneurship, there’s one tool that consistently separates thriving businesses from struggling ones—budgeting. Whether you are just starting out or managing a growing company, budgeting helps guide decisions, plan for growth, and avoid potential pitfalls. In this column, we’ll discuss the importance of budgeting for businesses and entrepreneurs, while using Banks DIH Limited’s 2023 Annual Report as an example to bring these concepts to life. Why Budgeting Matters A budget is more than just a plan—it’s a roadmap that directs your financial resources to where they will have the most impact. Without a clear budget, even successful businesses can find themselves scrambling when expenses rise or revenue dips unexpectedly. Entrepreneurs need to look at budgeting not just as a way to control costs but as a critical tool for achieving strategic goals. Budgeting allows you to: Allocate Resources Efficiently: Ensure that every dollar is working towards your company’s success, from marketing to production. Track Performance: Comparing your actual performance with the budget helps identify areas where you need to improve or adjust strategies. Prepare for Uncertainty: A budget helps you plan for unexpected costs or revenue fluctuations, acting as a financial cushion when times get tough. Set Strategic Priorities: Determine which areas of your business to focus on in the coming year based on financial constraints and opportunities. Key Components of a Budget There are several critical components that every business budget should include: Revenue Projections: Estimate how much money your business will bring in over the budget period. Be conservative in your projections to avoid overspending. Fixed Costs: These are your consistent expenses, such as rent, utilities, and insurance. They don’t change much month to month, so they’re easier to forecast. Variable Costs: These fluctuate depending on your level of business activity for example, raw materials for production or shipping costs for an e-commerce company. Capital Expenditures: If you plan to make large investments in equipment or technology, these need to be factored into your budget. Capital expenses are long-term investments that impact cash flow. Cash Flow Projections: Tracking cash flow ensures that you have enough liquidity to cover day-to-day expenses. A healthy cash flow keeps your business flexible and responsive to market changes. How Budgeting Supports Decision-Making Budgeting doesn’t just keep you on track financially; it’s also a powerful decision-making tool. With a clear budget, you can easily see how your business is performing, whether you’re on target to meet your goals, and where you need to adjust. Consider the case of Banks DIH Limited, one of Guyana’s largest beverage and food companies, to see how budgeting a plays crucial role in business strategy: Banks DIH’s Revenue and Profitability in 2023 According to Banks DIH’s 2023 Annual Report, the company generated a total revenue of $49.7 billion, up from $44.5 billion in 2022. This represents an 11.7% increase in revenue, which is significant for any business. This growth can be attributed to strategic investments and operational improvements guided by a well-structured budget. Their profit before tax also increased by 8.3%, showing that not only did they grow sales, but they also managed their costs effectively. Banks DIH relies on the budgeting processes to ensure that every aspect of their business—from marketing to production—runs smoothly. The company’s capital expenditure of $8.8 billion for 2023 included investments in new brewhouse equipment, packaging machinery, and temperature control systems. These investments are critical for long-term growth, and their budgeting process ensured that they had the necessary funds allocated to continue expanding their operations. The Importance of Tracking Performance Once a budget is in place, tracking performance against that budget is key to maintaining financial discipline. If a business finds that it is overspending in certain areas or that revenue projections aren’t being met, the budget provides the framework for adjusting quickly. For example, Banks DIH’s net profit for 2023 was $9.9 billion, an increase of 7% from the previous year. Monitoring and adjusting budgets allowed them to grow profit even as the global economy faced significant disruptions. By constantly tracking performance and comparing it to their budget, Banks DIH was able to make timely decisions that safeguarded profitability. Planning for the Unexpected One of the great challenges for any business is dealing with the unexpected—whether it’s an economic downturn, supply chain disruptions, or rising costs. A well-designed budget incorporates contingency plans and reserves to manage these uncertainties. In 2023, Banks DIH faced rising costs for raw materials and energy. Yet, their careful financial planning allowed them to weather these increases without drastically affecting their bottom line. This kind of flexibility comes from smart budgeting—setting aside reserves or building in buffers that allow a company to absorb financial shocks. Setting Priorities and Growth Strategies A good budget helps business owners set clear priorities for growth. For instance, if the company wants to expand into new markets or increase production capacity, the budget ensures that there’s enough financial backing to support these moves. Banks DIH, for instance, has a capital commitment of $11.2 billion for 2024, with a large portion allocated to upgrading soft drink plants, dairy production, and transport facilities. This demonstrates how budgeting can help an organization allocate funds to projects that will generate future growth. Final Thoughts on Budgeting For entrepreneurs, a budget is more than a financial exercise—it’s a critical tool for steering your business towards success. It forces you to look at your resources, set realistic goals, and ensure that every dollar is being used effectively. Remember, the goal of a budget is not to limit you but to empower you. By laying out a clear financial plan, you give yourself the flexibility to pursue new opportunities and adapt to challenges as they arise. As demonstrated by Banks DIH, successful budgeting involves constant evaluation and adjustment—something every entrepreneur should embrace. Budgeting may seem like a daunting task, but the rewards it offers are invaluable. Whether you’re looking to grow your business, navigate through uncertain times, or simply ensure that your business stays on track, a solid budget is the foundation that will help you achieve your goals. Until next time, stay disciplined, stay focused, and keep making every dollar work for you. Related Similar Articles

Somebody has to take a clear and strong stand Sep 16, 2024 Features / Columnists, News, The GHK Lall Column Hard truths… Kaieteur News – First, it was the British.  His Royal Highness, Her Royal Highness, the King, the Queen, the Governor General, the powers and principals in and all over Guyana.  The Brits are gone now.  Well, not quite, since they enjoyed a resurgence when the oil started gushing.  Now it is Exxon.  Exxon is in.  Exxon is it.  Exxon is here, there and everywhere.  Exxon is up.  Exxon is around.  Exxon is supersize.  Where is the Guyanese leader, the Guyanese group, the Guyanese man or woman, who will bring Exxon down to size? Exxon’s presence here is mandatory, and with that, there is neither discussion nor negotiation.  I stand where I stand.  But Exxon must not be allowed to stand over Guyana and stand on Guyanese.  Exxon is a colossus.  But Guyanese are not crapauds, what the Creole tongue makes sound as crapo.  No Guyanese-not even the most impoverished, nor the most unlettered-should flatten their backs and submerge their minds in preparation for Exxon to stamp on them, then stand on top of them.  What Exxon has been allowed to do here, and get away with, has been allowed to go on for too long.  Guyanese are neither slaves nor serfs, and it is time that they stand and begin to show what they are about.  Truly, completely, unequivocally, and immovably about. Now I introduce Guyana’s four top leaders.  President Dr. Irfaan Ali.  Vice President, former president, Dr. Bharrat Jagdeo.  Opposition Leader, Mr. Aubrey Norton.  Opposition Leader AFC, Mr. Nigel Hughes.  Each one of them, all four of them must take off their soft white gloves and come out swinging.  Not at me for saying this.  But at Exxon that is standing on the heads of Guyanese.  Their words have been too measured, too carefully crafted and polished, as if they are putting on display some rare family jewels.  This is the oil wealth of the Guyanese people that is at stake, which all four of them know.  It is not ballet. There is the fullest appreciation that they each have their political considerations, and their ambitions.  But those should not take precedence over the interests and welfare of the Guyanese.  Short-term, as in now, and long-term, as in generational, what is wrapped up in the national destiny.  In the context of Oil Guyana, political leaders must shelve diplomacy, distance from their present timidity, and project genuine bravery.  The oil wealth of Guyana is more than remaining in power or rising to power.  It is generations of Guyanese who need economic fairness from their oil asset. Excellencies Ali, Jagdeo, Norton, and Hughes are not hoping and pleading and waiting for a job on one of Exxon’s offshore oil rigs.  Nor some cushy corporate position in Exxon’s Guyana High Command.  Each of the four of these illustrious sons of Guyana has stepped forward, raised their hands, and swore that they are the best to lead this nation and do their best for its people. So that they can get the best out of their many endowments, most of all the natural resources.  This is what they must manifest in unambiguous and unyielding terms before Exxon, before America, before the world.  They must be warriors.  Guyana does not need diplomats nor missionaries nor wimps today.  They need warriors relentlessly advancing for the national cause.  In Exxon’s face, if that is what must be.  They must be prepared to command with their presences.   They must not fear being crushed by Exxon (or America).  America will have to make Guyana a vassal state, if it wants this oil so cheap and so readily available, while its power is expressed through Exxon. The singular mentality of brothers Ali, Jagdeo, Norton, and Hughes must not be that their future and their ascendancy are dependent on the benevolence of Exxon (and America).  NO! Their future and success hinge on the goodwill of the Guyanese people.  Take a stand for them, my brothers.  Be ready to lay everything on the line before Exxon, leaders of Guyana.  Everything with power, pride, and perspicacity.  Stop this pussyfooting around with clever words fellow Guyanese Ali, Jagdeo, Norton, and Hughes: stand like men and speak like men. Messrs. Ali and Jagdeo transform into Conan the Barbarian and Ivan the Terrible when dealing with local infidels.  But remake themselves into Winnie the Pooh and Mother Theresa when they must face Exxon.  What happened to their manhood?  Where is their brotherhood with Guyanese?  Messrs. Norton and Hughes hold themselves as the better alternatives to the Ali-Jagdeo axis.  It cannot be by being imitations of them.  The same walking on verbal eggshells, tiptoeing in velvet stockings, for fear of upsetting Woods and Routledge.  I say damn these white enslavers and exploiters.  I denounce their Guyanese schemers and collaborators.  It is time for somebody, some citizen, if it cannot be some leader, that takes the bull by the horns and takes the fight to Exxon.  Guyana’s Fab Four must advance on the front foot, and discard kowtowing on their backbones. Too many have groveled too long before Exxon.  It is time that this national self-castration cease.  Either Ali, Jagdeo, Norton, or Hughes step up.  Or some new Guyanese introduce themselves to those disillusioned and disgruntled Guyanese voters.  There are enough of the latter who need but don’t have.  They know what is there and theirs but are neither seeing nor getting any of it.  The four stand, or they fall. (The views expressed in this article are those of the author and do not necessarily reflect the opinions of this newspaper.) Related Similar Articles

EPA clears the way for Western Logistics to provide waste management services for the oil sector Sep 16, 2024 News Kaieteur News – The Environmental Protection Agency (EPA) has waived the need for an Environmental Impact Assessment (EIA) to be conducted for a non-hazardous waste service to be provided by Western Logistics. According to the Project Summary on the EPA’s website, the 100%-owned Guyanese business, established in 2018 is seeking to collect and transport approximately 51 cubic meters (M3) annually of non-hazardous (food waste) generated by vessels servicing the oil and gas sector. The waste will be collected and transported from the Guyana Shore Base Inc (GYSBI), Houston, East Bank Demerara (EBD) to the Haag’s Bosch Sanitary Landfill Site, Eccles, EBD. “Waste shall be transported via open back canter that is equipped with cargo nets, safety securing straps, and personnel to mitigate movement/ falling garbage during transporting to landfill,” the company stated. To avoid pollution of the Demerara River and soil along the East Bank corridor, the developer explained that the food waste would be contained in a “ton sack 22,000 lbs jumbo bags that are spill and waterproof”. The bags will be strapped with cargo nets and secured inside the canter tray with high frame barriers to prevent/ reduce movements during transportation. Western Logistics said it invested a capital of $5.5M and expects an annual turnover of $2.3M in the five-year project duration. Meanwhile, in its decision issued on September 9, 2024, the EPA announced that the project will not significantly affect the environment, and is therefore exempt from the requirement to conduct an EIA. “The potential impacts of the project on the physical, biological, and socioeconomic environment will not be significant, given that non-hazardous solid waste will be collected and transported in waterproof and spill-proof ton sacks to cater for any spillage or leakages,” the Agency stated. It also noted that the application and project summary submitted outlined adequate mitigation measures for air, noise, surface water, and soil pollution from the project. Persons who disagree and may be affected by the project can lodge an appeal of the EPA’s decision within 30 days of the notice. Appeals against the EPA’s decision should be addressed to: The Chairman, The Environmental Assessment Board E-mail: [email protected] Website: www.epaguyana.org EPA was keen to note that its decision is not an indication that the project has been approved. Related Similar Articles

“We not into talking business” – Slingerz Racing stables aims to defend President’s Cup title Sep 16, 2024 Sports Slingerz Racing stables will be out to defend their title at President’s Cup Kaieteur Sports – Guyana Cup and President’s Cup Championships winning racing stable, Slingerz Racing Stables, are strong believers of ‘actions speak louder than words’. Javid Ali, owner of Slingerz Racing Stables addressing the media at Guyana Cup 2024 While other racing stables are sharing their sentiments on winning the President’s Cup come Sunday, September 22 at Rising Sun Turf Club, West Coast Berbice, Javid Ali and his Slingerz Racing stables are focused on successfully defending their title. “We not into the talking business, come President’s Cup 2024, we would be there to defend our title,” Ali said. The decorated Slingerz Racing stables will have the defending President’s Cup champion, John Bull out to defend, while the Guyana Cup champion Olympic Kremlin will be out to attack and reign supreme. Olympic Kremlin, who was imported from Brazil, looked a class apart at the Guyana Cup with a crushing win. Js Racing stables have recently imported two horses from Brazil, and one that will be eyeing to beat Olympic Kremlin at the President’s Cup feature event is Mapa Do Brazil. In addition to Js Racing Stables, Jumbo Jet Racing Stables, Jagdeo’s Racing Stables, and Simply Royal Racing Stables will be out for glory at President’s Cup. Reliable reports have also come from the Corentyne area in Berbice, that more new horses were imported after the Guyana Cup, last month. The high caliber of horses sets the playing field level, and fans will be treated to another episode of quality horse racing. Nine races are on the program for the 2024 President’s Cup, and more than G$15 million will be up for grabs. The feature race will be open to all horses, three-year-old and over, running at an approximate distance of eight furlongs. Entries have opened and should close on September 17. Organizers have indicated that no late entries are permitted. Related Similar Articles

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