8 Steps to Build Your Company’s Financial Strategic Plan

Creating a financial strategic plan is essential for the success and sustainability of your business. A financial strategic plan outlines the financial goals and objectives of your company, as well as the strategies and initiatives needed to achieve them. 

Take a look at eight steps to help you build a solid financial strategic plan for your business’s future.

1. Understand Your Current Financial Position

Start by assessing your company’s financial documentation. Think balance sheets, income statements, and cash flow statements. You’ll get a snapshot of your company’s fiscal health. You’ll see areas that might need improvement but also set the stage for growth by giving you a data-driven way to move forward.

2. Set Clear Financial Objectives

Create clear and attainable financial goals for your company based on your company’s current financial state. Consider things like a percentage increase in annual revenue, cutting down specific operational costs, or achieving a certain profit margin. Each goal can be based on various KPIs, which we will discuss later.

Make sure to benchmark your goals versus realistic expectations, setting a clear path forward in your financial strategic planning process. Leave enough room for adapting your strategy in case things don’t go according to plan.

3. Identify Key Financial Metrics

Your goals must be measurable and evaluated, so continue by identifying key financial metrics and performance indicators. Focus on KPIs like revenue growth rate, gross profit margin, net profit margin, cash flow status, and return on investment (ROI). 

These indicators allow you to effectively gauge the performance and health of your business. Regularly testing these metrics against your plan’s benchmarks allows for real-time insights and tweaks.

4. Conduct a Market Analysis

While a financial analysis is an internal gauge of your cash flow, a market analysis involves examining external factors that can significantly influence your company’s finances. Dive into current market trends, your competitors, customer behaviors, and any industry-specific regulations that may impact your business operations. 

Thoroughly analyzing your target market can pinpoint opportunities for growth and potential threats before they become serious. This proactive approach informs your financial decision-making and helps move your business forward with confidence.

5. Develop Financial Forecasts

Forecasting allows you to project your company’s revenue, expenses, cash flow, and profitability anywhere from one month to three years in advance. Crafting these forecasts should blend historical financial data, market analysis insights, and realistic assumptions about future business performance. 

Yes, there are many data analytics tools and software to help you examine the numbers behind your financial health. But humans make decisions, which is where human expertise and experience come into play. 

6. Formulate Strategic Financial Initiatives

What tactics will you use to attain your business’s financial goals? Formulating a plan should include diverse initiatives rather than relying on a singular purpose. Consider combinations of pricing strategies, cost management practices, new investment avenues, and enhancing financial risk protocols to better gauge your company’s performance. 

Prioritize initiatives that promise the most significant impact on your financial health and growth. Consider using the 80/20 rule to foster this growth, meaning that investing in 20% of your products or services will drive 80% of your growth.

7. Allocate Resources Wisely

To support your financial plan, allocate company resources wisely among financial, human, and technological assets. This approach enhances efficiency and effectiveness and safeguards against wasting resources. You’ll also see how your company utilizes every asset for maximum benefit toward achieving your financial goals. Again, the 80/20 rule applies.

8. Monitor and Adjust Your Strategic Financial Plan

A financial strategic plan is not a static document. It should be adaptable to changing circumstances and market conditions. Establish a way to oversee your business’s performance against the financial benchmarks you set in the beginning. Employ a systematic approach to evaluate your financial performance. This will identify discrepancies that may signal a need for strategic recalibration. Timely modifications to your plan can help you adapt.

The Role of Professional Help in Your Company’s Strategic Financial Plan

Trusted business advisors, like those at The Whitlock Co., have the expertise to help you create a relevant strategic financial plan based on your company’s current state.  For more information, request a consultation from us today.


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