Most budgets start with trying to increase prices as much as you think the market can bear.
Next you try and squeeze down salaries and benefits as much as possible.
Then you go squeeze your suppliers, maximum.
Finally, your budget shows a good profit. You have maximized revenues and minimized costs.
BUT … you are doomed to fail.
How can you succeed by squeezing the three most important groups of people to your business: your customers, your employees, and your suppliers?
Good budgeting requires that you improve your processes – so that more value is delivered to your customer at lesser cost to you. You should be using your head to creatively reduce costs, charge less, provide more value to your customers and pay your employees more.
It can be done if you shift your paradigm.