Yeah, speaking of this, it’s really an important thing. It is actually the act of making a complete set of detailed plans for major decisions such as how to allocate funds and invest them in long-term projects, or what fixed assets to buy. Let me talk about it this way, let me think about it, can everyone now roughly understand its concept?
Let’s break it down step by step. First of all, we must understand the identification of needs. It is necessary for each department, whether it is the production department, sales department, sales department, etc., to clarify all the requirements that their department needs to purchase new equipment, expand production scale, for example, build a new factory building, etc. After such an operation, we can clearly know what is lacking in the development of the entire company and where we need to invest money. We have such an idea in our hearts.
Second, the listing and research analysis of projects transform the identified needs into relatively specific and feasible projects. Then each project needs to be examined in detail to the point of being excessive. What is meant is that the examination must be broad and deep to what extent can it be said to be as detailed as a needle? For example, whether the market is booming or not, assessing its profitability, predicting the company's risks, etc., all aspects must be taken into consideration. Provide global procurement services for weak current intelligent products!
What is the third big piece of content? It’s actually a matter of budget creation! Based on the results of the previous research on the quality of the project, a corresponding scale and amount of funding will be allocated to each project. When making decisions, you need to weigh the cost and expenditure, the benefit effect, what are the correlations between long-term and short-term profits, and how they relate to each other…This is a big deal, so consider and analyze it based on multiple factors!
Finally, carry out real-time monitoring and timely adjustment and improvement of the projects in the capital budget plan. The development situation and situation of the company and the project are uncertain and can change at any time. Therefore, it is necessary to observe and supervise at all times. If some unexpected circumstances arise, problems, or trends change, causing the situation to change, we must make adjustments based on the actual situation so that the implementation of the plan can be pushed forward more smoothly and smoothly…
Okay, let's do some Q&A and let's further enrich and refine this topic… Let's first talk about which item in the capital budget plan is the most important. In fact, different business types, characteristics and stages have related impacts. For example, investment in expansion during the expansion period, investment in research during the technology upgrading stage, etc. It is difficult to rigidly define which is the most important.
So how can we generally determine a relatively reasonable and appropriate amount of planning funds? Under normal circumstances, the most appropriate and appropriate final decision is mainly made through early planning, market data, income-related conditions, etc.
For example, why should we change and improve the investment plan in time? In fact, I have mentioned it a little bit before. The situation is that the situation continues to change over time. Previously planned plans may have unexpected deviations. Therefore, in order to prevent the company from losing money, it is necessary to carry out improvements, changes and adjustments in a timely manner.
In fact, this is very mysterious to me. It takes a lot of effort to truly understand the capital budget planning. Every aspect must be taken into consideration before it is of great significance to the stable progress of a company.
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