Most businesses have some sort of business plan. Very often it’s filed away somewhere but not used day-to-day to drive business performance and growth.
When you have good management information your plan becomes the road map for your business, so you need to make sure the vision you created is something you’re excited about and committed to.
But very few companies have a financial strategy and this means that there isn’t any connection between what the business plan says, and the financial reality you want to create for your future. The 2 things just aren’t connected.
It’s no wonder so many business owners work all their life and end up with very little to show for it all.
A financial strategy should include for example:
- Your personal wealth plan – how does the business get you where you want to be financially in the long term?
- A plan to build your pension
- A plan to build the value of your business and an idea of how and when you might want to exit
- The generation of buffer cash and getting away from tight cash flow forever
- Being clear what you would consider using cash buffer for
- How to fund business growth
- Your retained profit strategy
- Building your balance sheet value
This will get you clearer on what your target clients and sectors should be, what your gross margin should be, and what your ideal staffing level should be. Instead of getting last year’s sales figure and adding 10% – very lazy!
You see it’s no good keep setting one-year budgets without knowing how that fits into the bigger financial picture and your plan for your life.
And now look at your business – is it giving you the life you really want?The key to getting the life you want is to firstly be very clear about the life and future you want, and then to make sure your short-term actions are lined up with those long-term goals, ambitions and plans.
Taking consistent action in the right direction is the most powerful and effective way for you to get the life you want.
But you have to know what that looks like FOR YOU.
Most people never take the time out to get clear on what they want, so they end up a life they just stumbled upon and not the one they dreamt of.
We offer a structured step-by step approach to take any business to where it wants to be financially. Tell us your dreams, we’re ready to help you achieve them.
Book a free 30-minute call with me
If you’re ready to take action and would like to find out more, you can book a free, 30minute call with me. I promise there won’t be any ‘sell’; that’s just not how we operate – just an informal chat to see if I’m the right person to help you.
To book your call, please email Martin at email@example.com and I’ll get back to you within 24 hours.