Dreams, catastrophes and reality

Budgets are built on the assumptions business owners make about the future.

“Budgeting is simply a plan with numbers,´ said Dana Klausmeyer, director of business development for Dohn Construction. “How far that plan and those numbers project depends on the nature of the industry. A company that creates high-tech production processes, for example, had better not budget too far out.”

Because assumptions can change in the twinkling of an eye – a pipeline in Alaska breaks down or a hurricane sends the price of plywood soaring – Klausmeyer counsels businesses to keep a weather eye on changing circumstances and to consider adjusting…