ABSTRACT
The major stage in the planning process is to formulate the budgets of income and expenditure, for both revenue and capital items. This chapter deals with income and expenditure on revenue account. Business planning can be divided into two broad categories. The first is strategic planning which is primarily concerned with forecasting and shaping the way the business is to be developed in the longer term so as to take advantage of perceived changes in the market for its existing products or services and to be ready to exploit new commercial opportunities and technological developments whenever they arise. The second kind of business planning is the shorter-term tactical planning that reflects the current trading environment and makes its impact through the annual trading budget. Most forms of business activity are affected to some extent by the external trading environment and the level of economic activity in the territories where business is being contemplated.
