What is one of the steps involved in creating a budget for a retail store?

Projecting upcoming expenses is fundamental to creating a budget for a retail store because it allows for a detailed assessment of the financial resources required to operate effectively over a certain period. This step involves analyzing previous spending patterns, forecasting future costs associated with inventory, staffing, utilities, marketing, and other operational necessities. Accurate projections help ensure that the store has sufficient funds to cover its obligations and avoid overspending which could jeopardize financial stability. By anticipating expenses, the store can plan accordingly, allocate resources efficiently, and make informed decisions that align with its financial goals and strategy.

While expanding product lines, hiring additional staff, and increasing store hours may be part of broader strategic initiatives, they typically fall under action plans that would stem from a well-structured budget rather than being foundational steps in the budgeting process itself.