Set objectives: Identify the financial goals and objectives aligned with the overall business strategy. Gather information: Collect historical data, market trends, and forecasts to inform the budget. Estimate revenues: Project the expected revenues based on sales forecasts and market analysis. Estimate costs: Identify all potential expenses, including fixed and variable costs. Allocate resources: Distribute the available resources efficiently to different departments or projects. Review and adjust: Regularly review the budget to ensure it remains relevant and make adjustments as necessary.