31 Oct Why is Financial Planning a critical part of a startup survival strategy?
The start-up phase in any business is extremely important and during this time, business owners have to make several critical decisions that form the identity and affect the future of the business.
These questions often include wide-ranging aspects such as who to target, introductory pricing or where it wants to launch its operations, etc. There’s another set of critical considerations however that is much more critical and any errors in this department could lead to serious consequences for the business.
We are talking about the financial planning area businesses have to do in order to survive through the turbulent and stressful early years, when budgets are usually falling short and a reliable source of revenue has not been generated.
The investors are actually the first real customers of any business and therefore, like any other category of customers, before you approach them you have to make sure that the products or services you want to present to them are ready.
The financial plan you prepare for investors must be able to present the situation of your company in a compelling way. Even though there are many documents and a long list of numbers that make up the financial plan of a business, investors care about the strategic thinking that is involved in the planning process.
And yes, we are aware that the word “strategic” is thrown around with almost everything in the business consultancy world, but what do we really mean when we talk about strategic financial planning?
Your business should be able to present certain key points but for the financial element 4 main areas are critical namely:
1. a comprehensive outline of the business current situation
2. a pragmatic vision for how it is expected to perform over the next few years
3. the financial vision that your management staff have for the business
4. a detailed analysis and clear financial model supporting your objectives
If you are just starting your own business or already have a business that needs expert financial support and advice to take it to the next level, we are here to offer guidance and support in a range of financial areas including start-up grants, setting up card transaction processes, implementation on accounting systems, cash flow/P&L forecasts, assistance in securing business loans/funding and creation of business plans.
Our team of experts at HSMB are passionate about guiding and helping business start-ups and entrepreneurs and we offer a range of services and advice across the main business areas. We provide advice and support in six key business areas namely, Business Formation & Setup, Sales Growth, Financial Planning, Marketing, HR/Legal Support and Operations.