Success in the business environment is therefore not a mere coincidence, but rather a product of planning and implementation. Management and financial planning are some of the essential aspects on which business and sustainable development objectives depend upon. But what are these terms in fact, and why are they so relevant? In this article, we will discuss some key principles basic to business and financial planning for changing the future of your organization.
Understanding Business Planning:
General business planning involves the act of identifying your firm’s objectives, strategies as well as the activities that need to be taken in order to realize those objectives. It is a snapshot of the current position and capabilities of your business, your competitors and the conditions in the market.
Key Components of Business Planning:
Marketing and Sales Strategy: Here under the sub-heading customer acquisition and retention you have to explain how you wish to capture and maintain the customers. It covers everything that has to do with how a product or service will be sold in the market for an agreed price.
Operational Plan: This concerns the activities of your business on a daily basis as well as the processes involved in producing a product, acquiring the necessary supplies and the resources that will be used for these processes.
Management and Organization: This describes relations of roles and responsibilities of personnel in the organization and decision making framework of your company.
Financial Plan: Being an important summary of your company’s financial objectives, forecasts and plans, a financial statement is one of the vital documents.
Understanding Financial Planning:
Financial planning is the art of predicting, controlling and regulating the flow of funds within an organization to meet its business needs. Financial management helps you make financial decisions for the financial well being, and the ability of your business to meet its obligations on one hand and the opportunities for growth on the other hand.
Key Components of Financial Planning:
Budgeting: Budgeting involves making a forecast of income and expenditure of one’s business entity within a given period. It is useful where there is a need to set monetary goals and measure performance.
Financial Forecasting: It involves the use of past records and market trends to forecast the likely financial result that a particular business will produce. It is useful in reaching decisions, bearing on expansion, investment and other financial operations.
Investment Planning: Far reaching as is the consideration of which company to invest in, perhaps equally important is the determination of where best to direct your corporation’s resources for expansion. Investment planning is a process of identifying opportunities for investment and then determining the risks and likely benefits.
Risk Management: Risk management is an important part in the formulation of the financial plans. These are things such as debt control, risk coverage and product diversification.
Tax Planning: Tax planning enables one to pay less tax and get maximum of the income after the payment of taxes and is an aspect of improving your finance for your business.
The Importance of Business and Financial Planning:
They are related and fundamental to achieving organizational objectives in any form of business. Here’s why:
Guidance and Direction: Having a business plan may give a clear direction of the firm hence focusing on the set objectives is easily achieved. Financial planning takes care of the resources required to enable you to realize these goals.
Resource Allocation: Planning involves the identification of goals and the provision of how resources such as human capital, financial capital, and time will be utilized. This results in efficiency and less wastage of time, and in the case of production other resources such as money, energy, etc.
Performance Monitoring: This is done by refreshing and evaluating the business and financial strategies so that you can measure the progress and pinpoint the problems that require corrections.
Attracting Investors: An impressive business and financial plan will help to attract investors as such a plan shows that you know your business niche and financial potential.
How Steadfast Consulting Can Help
This is why at Steadfast Consulting we say that every business is different and so are its planning requirements. At Eire and Associates, our consultants assist you to create specific business and financial strategies for your business venture. If you are a start up striving to enter the market and grow to the extent of an established company or a company in existence seeking growth then we offer you the key to growth.
Our services include:
Comprehensive Business Planning: We guide you in preparing a comprehensive business plan with all categories of the analysis and the framework of your organization.
Tailored Financial Planning: We can help you in budgeting as well as in creating financial forecasts, optimizing your investment, and minimizing your risks.
Ongoing Support: We give you flexible solutions and propose to assist you in reshaping your methods, when your enterprise is changing.
Final Thoughts:
From strategic management, business and financial services are not just a formulation of objectives; they are the definition of achievable success. In thus aligning SMARA’s business strategy and its finance, it is possible to properly manage the organization and keep it afloat in the contemporary business climate.
In Steadfast Consulting, we strive to make sure that your business goals are met. Call us today to discuss if our business planning services will be a good fit for your business’s success.
