"I've got to say it's a delicate balance, you like to bring in some free transfer as well," he said.
"When you're spending money you need to ensure you're doing so wisely and carefully.
"Be sure that you're buying a player who is going to make a difference, young enough to hold his value so if the worst happens, you'll have a saleable commodity.
"I would think we're probably been linked with five to six players at the moment and if we can get another three I would be quite pleased with that.
"It's a very difficult situation and this is where the likes of (owner, David) Sullivan, (chief executive, Karen) Brady and of course Alex (McLeish) play a massive part in this football club, they are massively skilled.
"Our board has been in place for 16 years, we've been in the Premier League for six or seven seasons. We've got great experience of what works and perhaps doesn't work so well."