“A good financial plan is a road map that shows us exactly how the choices we make today will affect our future.” (Alexa Von Tobel). When you are looking at your business as a whole, what exactly do you see? What do you envision in the future of your business? Do you have your eyes to the sky and want to have a profitable business? These questions may have obvious answers, but how you get to your end goal is the big question. Financial Management as intimidating as it may sound, can and will end up being your best friend once you figure out exactly what you need.
It is safe to assume that we have all been on a road trip or driven somewhere knew. Prior to setting off to your destination you would have needed to come up with a plan. You would look at the route you are wanting to take; whether it is the short or long way, how far of a distance you are travelling, approximate travel costs, where you will stop etc. The same goes for your small business. You need to plot your destination through your financial management. There are two key components to take into account in your plan.
Short term goals: map out what you need to have accomplished. These goals need to be attainable in a short amount of time. They also help lead you in the direction of your long term goals.
Long term goals: this is what you want to see happen in the long term. These goals are generally a year or more into the future.
Once you have your sights set on what you are wanting in terms of your short and long term goals, it’s as easy as making a plan to join them all together. Without a plan, you are going in blind with no knowledge of where you are at currently and where you can be in the future. If you have your goals plotted out, but then are having difficulties creating proper projections within your business, (because let’s face it math is not the easiest at times), there are many tools out there to help guide you. Whether you take research into your own hands or decide to talk to a professional that is up to what is going to best suit your needs. Knowing that financial management is a large part of success in your business is a step in the right direction to achieve the goals you have and are creating.
For more information or to inquire about financial management, please contact Bitledger at: