After meeting chairman Simon Jordan, Taylor has been told he has little money to spend over the summer.
Instead, he must raise funds by removing out-of-favour players from the wage bill. Key men such as Jobi McAnuff - linked once more with Watford this week - could also be sold to boost available transfer cash.
"I know roughly which players I'd like to bring in, but it's a case of waiting to see who departs first," Taylor told the Croydon Advertiser.
"I can't replace the players released because they're out of contract. But if the phone rings and some players go to other clubs,that could open up a situation for me.
"I was realistic when I met with Simon [Jordan] - I didn't expect there to be a big kitty to spend on players."
But Taylor reiterated his relucatance to exploit the loan market, saying: "Loans can be helpful, but they're not a priority for me. As soon as the loan player leaves, you then have to start again. So I'd rather bring in players permanently."