Local CEO says static budgets are a recipe for stagnation

Stephen Ellul, CEO of Growth Bully, has emphasised the need for businesses to rethink their approach to budgeting, particularly when it comes to marketing.

In a recent LinkedIn post, Mr Ellul advocated for a shift from static annual budgets to a dynamic, quarterly review process, warning that outdated budget practices could hinder growth.

“Budgets shouldn’t be static,” Mr Ellul stated, noting that what works for a business in the first quarter of the year may not necessarily yield the same results in the third. While setting a budget at the start of the year is important, he argues that it is only “half the equation.” The real game-changer, he says, is refreshing budgets every quarter.

Mr Ellul outlined three key benefits of this approach:

• Smarter Investments: “Double down on what’s working and eliminate what isn’t,” he said. Businesses that periodically reassess their spending can better allocate resources to maximise returns.
• Flexibility: Quarterly reviews allow companies to quickly adapt to emerging trends and market shifts, ensuring they remain competitive.
• Clarity: Regular adjustments help maintain a sharp focus on return on investment (ROI) and measurable results.

He also cautioned against the all-too-common practice of setting a budget once and forgetting it. “Too many businesses realise mid-year that they’re either overspending or missing growth opportunities,” he said.

The Growth Bully CEO’s advice comes as companies prepare for the new year, making it a timely reminder for leaders to consider more agile budgeting strategies.

“Start 2025 with a clear, actionable budget,” Mr Ellul urged, “and make quarterly reviews a habit.”