This is Why Financial Planning is so Important to Your Business
04 Dec 2019
This is Why Financial Planning Is So Important To Your Business
Article by Kieran Perry Business Coach
Financial planning in business is like big-scale budgeting. It's a crucial part of running a business and, if done correctly and regularly, will help your business grow and sustain growth. But exactly why is financial planning so important to your business?
What is financial planning in business?
It's the process of allocating funds to every aspect of your business and ascertaining how your business is going to achieve its various goals. The process includes the analysis of past financial reports, the forecasting of net revenue, the analysis of risks, and the estimation of operating costs.
Financial planning should be done before the start of every new financial year. It's important that you are realistic in terms of budget, estimations and forecasting.
And management Accounts updated each month throughout your financial year.
Why is financial planning important in business?
Even if you are a small company with a limited budget for expenditure, it's vital you have some sort of financial planning process in place. It acts as your guide for running your business, helping you define a realistic strategy for growth and more.
Financial planning allows you to create a revenue model that incorporates potential profits and losses along with cash flow tracking. You can then compare the statistics with your financial plan to figure out where your business is currently at. In other words, you can measure your actual progress against what you had envisioned. That way, you are better prepared to make decisions, big or small.
What Is A Solid Financial Plan
A solid financial plan ensures you have enough funds for each aspect of business, including equipment, staff, marketing - and emergencies. It gives you as a business owner peace of mind and aids the overall functioning of the company by ensuring financial stability.
Financial planning empowers you by helping you understand your company's current and future finances and profitability. If you feel you need expert financial planning assistance, get in touch with me and we can discuss your needs during a FREE telephone consultation
Let A Business Expert Plan Growth For Your Company
For those seeking business help and support, Kieran Perry is an excellent choice with business coaching and sales training sessions available in person, via the phone and online. Follow him on Instagram to learn more about his services.
His services include independent business advice, business coaching, sales training, executive mentoring and management consultancy to business owners, directors, start-ups and individuals across the UK and online. To read more on his business advice view his Blog for more business strategies, or see his Pricing, or Reviews . Follow Kieran on Instagram.