CFO Consulting tailored for your growing organisation
Finance strategy
As your Finance Strategist, we help you raise funds, allocate resources, manage expenses, invest in growth, and produce sustainable profits.
What is a finance strategy?
Your finance strategy is the plan you use to manage your resources within the business, and bring in other funding if necessary, to reach your goals and achieve long-term success. It includes making important choices about how to raise funds, allocate resources, manage expenses, invest in growth, and produce sustainable profits.
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The FD Consultant can help you develop a strong financial strategy aligned with your business model, considering key business opportunities, risk tolerance, market conditions, funding options, and current financial health.
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Make sure your financial planning aligns with your broader business goals, such as expanding, innovating, or increasing your market share. By making smart, future-focused financial decisions, you can ensure your business not only survives but thrives.
Why a finance strategy is important
It's crucial to examine the business ideas presented by the management team. Initially, we act as a sounding board, offering commercial insights to help determine whether the proposed idea is viable. Although a concept may seem intriguing on paper, we need to model it and translate that vision into numbers.
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Our financial models bring concepts to life and can highlight potential problems and unexpected opportunities. For instance, if we aim to grow sales by a certain percentage and hire new salespeople too quickly, we may run out of funds.
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Financial modelling will reveal this, allowing us to prioritise the budget and stagger the onboarding of new salespeople. Essentially, the revenue generated by one salesperson can finance the hiring of another, providing a structured method to test and validate a business plan and strategy. See below for more detail on financial modelling.
Financial modelling
Financial modelling is creating a clear, quantitative picture of a business's real or possible financial situation.
Use past data, assumptions, and calculations within the financial model to predict a company’s future performance, including revenue, expenses, cash flow, and profits.
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A company might use a financial model to check the potential return from launching a new product, evaluate the effects of a merger, or understand how various economic situations could impact its profits.
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Financial modelling simplifies complex financial information into a clear, actionable framework that helps stakeholders make informed decisions.
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The FD Consultant would love to help your business with a finance strategy.
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Please take a look at our resources and videos to get to know Romesh and the team at The FD Consultant and learn more about our insights and expertise.
FAQs on finance strategy
1. What is a finance strategy?
A finance strategy is a plan for how a business manages its money to reach its goals. It explains how to earn money, keep costs down, set budgets, handle risks, and invest for future growth. A good finance strategy aligns with your overall business plan. This helps you make smart decisions and remain financially strong.
2. Why is having a finance strategy important?
Without a clear finance strategy, it's easy to get distracted or spend too much on things that don't help you succeed. A solid strategy enables you to plan, manage cash flow, and support sustainable growth. It also ensures that every financial choice, from hiring to investing, aligns with your long-term goals.
3. What are the key elements of a finance strategy?
The main parts include budgeting, forecasting, investment planning, cash flow management, risk management, and performance tracking. These elements work together to show how the business makes money, spends it, and reinvests it.
4. How can a finance partner or team support a company’s finance strategy?
A finance partner helps put strategy into action. We work with leadership teams to create realistic budgets, model financial scenarios, and identify opportunities for improvement. We also turn financial data into clear insights so teams can make decisions with confidence rather than guesswork.
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5. How often should a finance strategy be reviewed?
A finance strategy is not a one-time document; it should evolve and adapt as your business grows. Review it at least every three months, or whenever something big happens, like a new investment, expansion, or changes in the market. Regular reviews help keep your strategy connected to actual performance and opportunities.
