“Make an immediate U-turn” your device announces.
Unexpected traffic was going to make you late, but now you won’t be. Your navigation app gave you live information about traffic, accidents, and roadworks. It guided you through the unexpected in a way a map couldn’t.
Having a financial strategy is like checking the map before you start a journey. It’s not enough.
Only when it’s up to date can a financial strategy inform your decisions in an effective way, like GPS navigation.
But how do you know when it needs updating? Here are 5 signs you need a new financial strategy.
1. You Don’t Have a 5-Year Plan
A 5-year plan, or 2-year plan if more appropriate, is a long-term financial strategy that keeps you on target.
These financial forecasts predict earnings and expenses, then plan for the results. Involving an accountant or financial advisor can take the pressure off of business owners in this process.
2. Business Growth
Change brings uncertainty but is necessary to get you from where you are in the market to where you want to be. In a period of change, keep on top of your finances.
In particular, if your business is expanding, a new financial strategy is needed that allows for the risks. Account for new salaries, overheads, and the unknown by updating your financial strategy.
3. A Change in Focus
Staying ahead requires innovation. But when you develop a new product that you’d like to make your flagship, it comes with expenses and risks.
If you are planning to refocus your company, you need a new financial strategy. It will help you account for new manufacturing costs and future marketing campaigns.
4. A Changing Industry
Changes within the industry demand businesses to evaluate their financial strategy.
There may be a sudden increase or decrease in consumer demand. A new competitor could threaten to take a chunk of your market share, forcing increased R&D funding. Even the world scene can impact your finances, as evidenced by how the pandemic forced many companies to adapt to new trends.
Whatever change is happening within your industry, or that you foresee happening soon, account for it financially.
5. Cash Flow Issues
If experiencing cash flow issues, a revision of a business’ financial strategy is needed. Of course, not every eventuality can be foreseen and planned for. But cashflow issues generally stem from a lack of financial strategy.
A full evaluation of your income, expenditure, and tax situation is the best way to find the cause of the problem. Once you or your financial advisor has done so, create a new financial strategy that accounts for what was missed before.
Take Control of Your Financial Strategy
Business owners don’t have to overhaul their financial strategies alone. Bringing on board experts can lighten the load. Their invaluable budgeting expertise will help you adjust your strategy to reach your financial goals.
We offer four levels of financial strategy assistance. They range from simple accounting support to full financial and KPI tracking. Whatever your budget and needs, we have the solution.
Get in touch with our team today so they can help you choose the right financial services package for your business.
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