The routine of looking at your cash flow, profit and loss and balance sheet every week or month makes sure you have a firm grip on what’s possible. You can tweak the model’s inputs, such as pricing, customer churn etc., to see the impact on cash flow and profitability in different scenarios. The uncertainty around new opportunities means financial modelling is crucial. For example, product development could be delayed pushing your revenue forecast forwards. The amount of resources needed might be unclear too. New opportunities come with uncertainty, because it’s hard to know how customers will react to a new product line or service. Financial planning can help you work out what’s available to invest. It’s much better to start planning now than wait until you’re pushed into a corner. That means setting aside your time, and financial and team resources, to pursue opportunities that will take time to pay off in the future.įailure to invest time in new opportunities can cause businesses to stagnate and eventually experience falling sales. It’s important to strike a balance between the short-term needs of the business and investing for the future. Balancing short-term needs and long-term potential Your company goals should help you prioritise opportunities by framing what success looks like and thinking about the impact it could have. That means working out what’s going to be most fruitful in pushing the business towards its objectives. There are normally more opportunities than your company has the time or cash to pursue. What factors influence financial planning? Your company’s long-term goals ![]() ![]() This guide will cover the main factors you need to think about when planning for new opportunities, highlight common mistakes and list a number of quick wins to kickstart your financial planning. But financial planning allows you to articulate your ambitions and start putting them into action. You might not be comfortable with spreadsheets or find it difficult to start quantifying the opportunity you’ve identified. But how do you make sure you have the cash needed and forecast revenue when there are so many uncertainties? You’ve identified a new opportunity and the potential is exciting. Having a new opportunity can be exciting, but how do you get your finances in shape? Our guide will show you how to understand the impact on your business.
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