What information should form the basis of a golf shop's 12-month budget?

A golf shop's 12-month budget should be rooted in forecasts and assumptions outlined in the business plan as these projections provide a strategic framework for planning financial performance. They incorporate anticipated sales, expenses, and necessary investments, allowing the business to prepare for various scenarios. This information is crucial for setting realistic financial targets and aligning resources with expected business activities and goals. The forecasts also help identify potential challenges and opportunities, informing decision-making and resource allocation.

While understanding past performance statistics can provide valuable insights, they are more historical and do not directly project future financial performance. Similarly, while golf industry sales trends and business strategies are important, they serve as supplementary data rather than the foundational basis for a specific budget. Instead, relying on forecasts and assumptions ensures that the budget aligns with the overall vision and objectives established in the business plan, making it the most appropriate choice for the 12-month budgeting process.