How would you rebuild a house after destruction from an earthquake? Would you rebuild exactly how it was initially built before the event?
What does this look like with a real business situation?
Unfortunately real life is made of failures and situations where the only solution is to rebuild from the foundations.
In financial language this is called zero-based budgeting.
It consists of a very detailed exercise of how the company functions and how financial success can be achieved through planning from what is left after the previous losses. This approach takes the view that any business activity must be measured and any cost must add value to the business before being approved.
In the end how did countries like Japan and Germany become World economic powers after being destroyed during Wars?
If you want to know more how your business can benefit from a Finance Director applying the zero-based budgeting approach to your business, do not hesitate to contact me.
Matteo Turi FCCA
Chartered Accountant and Finance Professional
Skype : matteo.turi
Tel. +44/(0)7915/202111
