The worst time to start planning for a crisis is when one is actually happening. A little foresight can mitigate the damage caused by economic turbulence, especially if companies use the right analytical tools.
One such tool is a sensitivity analysis, also called a “what if” analysis.
Having a financial consultant pour over your company books can cause anxiety and friction. Staff get nervous when a consultant is reviewing their work. They may worry mistakes will be found, making them look bad or incompetent.
Yet the reason for hiring an outside consultant is not to make anyone look bad but to uncover issues holding the company back and work with finance staff to improve its financial acumen.
A simple analysis can help keep your business’s key initiatives focused on your highest return area.
You have set the budget, agreed on initiatives and even have a long term plan. But how can you validate your company is on the right track?
Developing your financial plan from your strategic vision is a critical step in moving toward your dream.
Financial plans can be as rudimentary or as complex as you desire, but no one gets too far without some form of plan. A sound financial plan is vital for any size of business – from small startups to large corporations. It’s like a compelling novel, telling the story about your company, where you have been and where you expect to go.
Time out - Planning for growth may be an offline activity.
It is hard enough to keep your customers satisfied, the plant running efficiently and your suppliers on schedule. On top of all that, how can you profitably grow the business? Here is one method to kick-start the process.
