Preparation is critical if you want your business to achieve long-term success. And one of the keys to that preparation is having a strong financial plan that aligns with your business goals. Company management, investors, business partners, and others will refer to this financial plan, which is a helpful tool for managing cash flow and monitoring performance. Here’s what creating a financial plan that aligns with your business goals entails. 

What is a Small Business Financial Plan?

A financial plan is a document used by businesses to outline and manage their finances, ensure proper resource allocation, and drive business decisions. Your business’s financial plan includes its goals and objectives and outlines its strategies to ensure ongoing financial health and growth. 

Financial plans typically include various elements, such as:

  • Description of the business
  • Financial statement
  • Personnel plan
  • Risk analysis
  • Key performance indicators (KPIs)

Creating a Financial Plan That Aligns With Your Business Goals

Creating a financial plan without consideration of your organization’s business goals can put your business on the wrong path. By aligning your plan with your business goals, the financial planning process becomes more strategic instead of just another administrative task you need to check off your list. 

Even the most successful companies can find themselves short on financial resources. When the leadership team takes the time to create a thoughtful financial plan, the business is more likely to allocate resources more intelligently and have the money available when it needs it. 

If your business goals and strategic plan outline where your business should be going, your financial plan should support that. Here are several ways you can ensure that happens:

  • Continue to Focus on the Long-Term — Whether you have a rolling budget or create your budget annually, it’s important to consider the big picture within your financial plan. You’ll need cash flow for everyday operations as well as capital to fund your strategic objectives. 
  • Keep Your Leadership Involved — Having your leadership team involved throughout the process can ensure your financial plan remains aligned with your overall business goals. This provides transparency throughout your organization so that resources are allocated effectively. 
  • Measure Your Success and Adjust — Identify the key performance metrics (KPIs) that will measure your progress and tell you how your business is doing. Similar to any plan, these ongoing measurements allow you to make necessary adjustments along the way to account for unforeseen risks or new opportunities. 

Successfully Executing Your Financial Plan

There’s no substitute for having a sound financial plan when it comes to producing excellent business results. This starts with having a working set of goals you can use to create actionable strategies for success. One strategy is having access to the right business financing options. 

At CAB Capital, we recognize that there is no one-size-fits-all solution to funding your business. A bank loan may be exactly what you need, or something else might be a better option. We have access to more than 150 products and specialize in helping small businesses access the funds they need to execute their financial strategies. Contact us today for more information.