How to do the financial planning of a company? 8 Steps to Get Started!

The first step in making an efficient business financial planning is to survey the current situation of the business. To do this, gather your organization’s data, such as operating time and financial history.

Then, it is possible to do a SWOT analysis, which consists of identifying market strengths, weaknesses, opportunities, and threats.

In this sense, keep in mind that it is necessary to have both an internal and an external view of the enterprise.

This will help you understand where to start when setting goals for your micro or small business.

2. Analyze your cash flow

After knowing the internal and external scenario of your company, the next step is to manage the budget and analyze your cash flow.

In this sense, having finance software can facilitate the process, integrating data and helping to prevent errors.

Here, it is important to record all income and expenses, as this allows you to understand the reality of the business. In addition, it is a way to easily view all the information about your financial transactions.

It is also interesting to separate by periods and by cost centers. This action creates subsidies to define the objectives of your financial planning.

The information may show that there is excessive spending with a particular supplier, for example.

Thus, when establishing a cost cut, it will be easier to present data to seek the negotiation margin with this agent or change supplier company.

That is, by analyzing your cash flow, you can identify ways to reduce expenses.

From this, the company may have surpluses in the budget to make an eventual investment or implement other strategies.

Also, the recording of costs and revenues may indicate the need to attract capital, either with sales or with other credit solutions.

3. Make projections

Projecting the financial future is important even for micro and small companies. To do so, these forecasts need to fit into corporate financial planning and must be guided by macroeconomic changes.

By analyzing the macro context, you will be able to identify opportunities to stay ahead of the competition. To complement, it is also worth thinking about what your customer expects from your products or services.

Conduct opinion polls and compare with other regions of the country. It is also important to always consider political changes and the financial market.

Thus, your company will have the basis to understand the future of the sector in which it operates and prepare properly for eventual changes.

4. Set goals for Financial planning

After knowing your company’s financial reality and considering the context in which it operates, it’s time to define what you expect for the short, medium and long term.

When setting your goals, be sure to ensure they are achievable.

In addition, if your micro or small company has employees, it is essential to make everyone aware of the objectives set.

Another interesting strategy is to divide each of them into small goals that stimulate team productivity and make work more dynamic.

That way, you can get results faster. The trend is for everyone to feel inspired to act in the best way to achieve the company’s financial planning goals.

5. Act on data for Financial planning

With the financial scenario established and financial planning based on realistic objectives, the company will be able to take the first steps towards better organizing its finances.

If there are no debts, the job is even simpler, as all you need is a boost to optimize results. On the other hand, if debts are present, it is worth paying them off before proceeding with planning.

For this, it is possible to renegotiate values ​​seek better conditions, and define financial priorities.

A tip to help with the choices is to measure and follow the metrics, aiming to find the points that deserve more attention and guarantee data-based decisions.

6. Have good inventory management

If your company works with inventories, know that a part of your money is immobilized in this way.

Therefore, keeping large volumes stored unnecessarily is a very inefficient measure, as this amount could be directed to other strategies.

One possibility is that this money was invested and provided a financial return. However, you need to have balance. After all, a very small stock can threaten your production flow and the fulfillment of demand.

Thus, from a financial point of view, inventory control is essential for financial health. If desired, use a control system to improve management.

7. Make ongoing investments

As you’ve seen, a company’s financial planning exists to keep finances in order. One of the results it provides is the availability of money to invest and grow.

This is because continuous investment is essential for the survival of an enterprise.

It is often necessary to invest in technology, physical structure, training, and new equipment, among other factors, in order to have more visibility. This initiative allows you to increase profit and stand out from the competition.

8. Track the results

Finally, you must have an action plan based on your goals and track the results you get. Set a schedule, determine the steps according to each objective, and distribute tasks to put the plan into practice.

Thus, all employees can work in alignment. This is critical to getting the most out of your action plan. In addition, set deadlines to analyze whether the activities carried out are having the expected outcome.

In this way, it is possible to identify if the results are adequate or if it is necessary to reformulate the action plan or goals. This is essential care so that all your financial planning goals can be achieved.