Strategies for Finance
Finance is one of the most important parts of your business. It drives growth, potential market share and more.
How many employees you can hire? Which products you can develop? Which niches or markets you can open? How much can you invest in sales and Marketing and when will the payback come? These are just a few of the questions a good financial simulator and financial plan will answer for you.
A good finance system includes: Budgeting process and cycle, Capital raising and planning, Cost Controls, process for Account Payable and Receivables, Cash Management, Analysis of cash flow and optimization and more. All companies need these at some level appropriate to their size and revenue.
A virtuous circle is the mathematical formula that determines what investment in marketing and sales generates what return (ROI) to support more growth profitably. Many factors must be considered like margins, sales cycle, cost to acquire leads and close sales, etc. Without a good financial “Virtuous Circle”, you can’t possibly reach your full potential and scale. You need a predictable throttle on both lead generation and sales. We’ll explain to how with two companies in the exactly the same business one became a billion dollar success while the other struggles with a few million in sales up and down. And how you can overlay these principles on your business model.
Ask yourself these questions to determine if your finance system is working or not:
- Have you developed a virtuous financial circle that is scalable?
- Does your financing strategy fund growth without forcing you to practically give away your company?
- Do you know how to compress your cash turn-around to grow faster without the addition of outside capital?
- Do you have a thorough understanding of every department’s financial inputs and outputs?
- Do your departments know how to properly communicate, motivate and make your employees accountable to results rather than just activities?
- Does your budgeting process allow your managers to take responsibility and grow?
- Do you regularly experience cost overruns?
- Do your managers wait too long to hire new employees?
- Does your budget force you to delay acquiring new resources when you need them?
- Does your financial department wield inappropriate power over the rest of your employees?
Don’t let your financial obstacles keep you from success!
Your financing system helps to determine almost everything about the way that your business runs, and if your finance system is not working as well as it should, it can really hold you back. Let the experts at AirTight Management help you overcome your biggest budgeting challenges.
Take the first step towards financial success by contacting us today to get your free business assessment.
Proven Strategies For:
Sales
Marketing
Operations
Development
