Strategic Planning Using Financial Models

Strategic Planning Using Financial Models

Uncertainty is a part of making business plans. But this should not stop you from creating strategic plans. This is where financial modeling comes in. Financial models do not make the future more predictable but it does help you choose between various options and prepare your business to navigate twists and turns as you implement your strategic plan.

What Is Financial Modeling?

Financial modeling is the act of building a conceptual framework that depicts where a business’ financial situation will be at some period in the future. It is based on real world information gathered from financial statements and market research.

When done correctly, a financial model considers all areas of a business’ financial performance and generates a three statement models, namely, income, balance, and cash flow . It uses clear, logical, and defensible assumptions in order to account for changes in business activity.

Who Should You Use To Prepare A Financial Model?

A financial model is a tool for your business that will be used to aid strategic planning. The person creating your financial model needs to have a strong understanding of accounting fundamentals and financial statement analysis, and ideally has knowledge of your industry.

What Happens After Creating A Financial Model?

While financial modeling can help a buyer feel more comfortable with your growth projections, it is only the first step in this process. You will want to use your financial model to determine the current and projected value of your company to see if it meets your goals. Next, you should detect areas for improvement or investment in your business, and develop a strategic plan for making this all happen.

Make sure to keep records of everything that goes into this process because buyers want to know how close you came to achieving past projections, what actions you took when you deviated or exceeded projections, which members of the leadership team were essential to this process, and how they can take your business to the next level.

Financial model can be used to develop and enhance strategic planning initiatives. It addresses five components: determining if your business’ value is where you want it to be, revising projected vs. actual results, finding opportunities for improved performance, developing action plans to achieve results, and setting the current organizational structure to reflect your business goals.

Why Should You Regularly Update Financial Models?

It is a foregone conclusion that your financial model will differ from what actually happens as time passes and conditions change. And that is why it’s critical to update your financial models and overall strategic plan on a regular basis. Any deviations from the model must be taken into consideration and actions must be taken to correct the issue.

Do You Have Corporate Responsibility?

Do You Have Corporate Responsibility?

Are you a bidding professional looking for up-to-date bidding tactics and strategies? Become a BaachuScribble Padi member for free and get access to technical resources and tools, Office Hours monthly webinars plus get exclusive access to our private community, Baachu Engage in Facebook. Join Scribble and become the smartest bidder in your sector.Click to join for FREE

Corporate responsibility is when the company takes responsibility for its actions and the impact it has on the environment, society and consumers. It includes how your business is operated and managed. It also includes employee welfare and your contribution towards alleviating social problems.

While donating to charities is commendable, the real core of corporate responsibility is ensuring that everyone within the organization is accountable and responsible. The business is aiming towards earning the trust of the consumers and stakeholders while meeting the expected ethical and social norms.

Why Is Corporate Responsibility Important?

  • It improves the company name and builds a brand.
  • Employees are drawn to companies that are more responsible.
  • It helps the company stand out in the face of competition.
  • It can help solidify and guarantee customer loyalty.
  • Improved environmental practices also help a company to comply with environmental regulations and avoid penalties.

Here are some ways by which your company can become a responsible corporate citizen:

Follow A Business Code Of Ethics

A business code of ethics acts as a guideline for employee behavior within or outside the organization. It deals with issues such as morale, values, environment, employee respect and customer service.

Businesses are now integrating corporate responsibility into their accepted code of conduct. This shows their commitment to social and environment goals.

Create A Workplace Health And Safety Program

Creating an efficient and proper workplace health and safety program will help in establishing a reliable system that will protect your employees and help in preventing accidents and injuries.

It ensures that you are following the government policies on health and workplace safety.

Protect The Environment

Develop policies and guidelines that show your company’s dedication towards protecting the environment. Produce reports and documents on show your activities related to environmental impact. Sustainability reports can also be used to study your social, economic and environmental activities.

Find The Right Suppliers

Ensure that you find the right suppliers who meet your expectations of responsible behavior. Screen them and study their past conduct and be open about what you expect.

Donate Money

Donate for causes that are related to your business. Many manufacturing businesses donate to the communities in the places where they have plants. The main idea is to give back to the society. It also sends a message about what your brand values.

Be Honest and Fair

Use marketing techniques that are honest and fair. It should reflect your company’s integrity. Do not use any form of communicating or marketing strategy that is manipulative or false. Always be true to your words. Your company should do what it says it does. This will build your reputation while also avoiding the risk of public backlash.

Aim at becoming a business that is beneficial to the society. Be transparent to your customers and create a positive social and environmental impact.

Tips To Be More Productive

Tips To Be More Productive

Are you a bidding professional looking for up-to-date bidding tactics and strategies? Become a BaachuScribble Padi member for free and get access to technical resources and tools, Office Hours monthly webinars plus get exclusive access to our private community, Baachu Engage in Facebook. Join Scribble and become the smartest bidder in your sector.Click to join for FREE

Productivity and growth go hand in hand. Often time’s people focus only on expanding their business. But with growth it becomes highly important that your business remains productive and that you can manage the increasing employees and demanding situations.

Employing right strategies in the right places can easily boost your productivity and help you reach your goals. Here are some ways by which you can increase your productivity:

Hire Managers

As your business grows, it might be difficult to maintain personal or direct relationships with all your employees. This is when an integrated management system becomes important.

Hire operation managers and controllers to implement and maintain effective financial information systems. Promote employees and make them managers. Empower the front line managers to take on more responsibility.

Expert Consultation

Rely on experts in areas that are beyond your expertise. Consult with such experts to fully understand your business. They will perform an organizational analysis and identify problems, provide solutions, suggest changes and more.

Implement New Technology

All businesses that want to grow or expand should employ and implement the use of latest technology. Implement of technology can mean two things.

It includes providing your customers the latest technological innovations. This will ensure that you stay ahead in the market and you are better able to the face the competition.

Technology can also be employed within the organization to boost productivity and efficiency. This can help employees to work faster and better. Technology and mechanisation can also automate most processes and help in storage and management.

Grow Gradually

Plan your business strategy is such a way that you grow gradually but surely. Losing control of a rapidly growing business should be avoided at all costs.

Consider all possibilities before taking on a new project. Always analyse and look for better solutions when looking for an expansion.

The tips mentioned above will help in increasing the productivity of the business. Integrate these suggestions into your overall business strategy. Monitor and review how these new changes actually help or affect your business. Make further changes when needed. With extra effort and dedication you can watch your business grow and prosper.

Better Sleep Quality = Better Performance

Better Sleep Quality = Better Performance

Are you a bidding professional looking for up-to-date bidding tactics and strategies? Become a BaachuScribble Padi member for free and get access to technical resources and tools, Office Hours monthly webinars plus get exclusive access to our private community, Baachu Engage in Facebook. Join Scribble and become the smartest bidder in your sector.Click to join for FREE

An average person spends about one third of his or her life sleeping. Each one of us goes into this power down mode of hibernation every night. But we never quite understand the importance or the purpose of sleeping.

Purpose of Sleep

Sleeping is extremely beneficial for both the body and the mind.

Sleep has a restorative function. From our daily tasks, our brains tend to gather metabolic waste which in the long run can lead to serious illness. This waste is usually flushed out of our system while we sleep.

When we are sleeping, our brain cells shrink up to sixty percent which makes the entire process easier and faster.

Sleeping is extremely important for memory consolidation. During sleep, our brain helps in maintaining and strengthening long term memories. Insufficient or inadequate sleep will hamper with this process. We might lose our ability to create concrete or emotional memories.

Sleeping is crucial for our overall metabolic health. Smaller hours of sleep can change even the metabolism of our bodies. Inadequate sleep can lead to the body converting energy from proteins and carbohydrates and taking lesser and lesser energy from the fat present in the body.  Erratic sleeping habits can also increase the chances of becoming diabetic or developing a heart disease.

Problems Caused By Inadequate Sleep

In a recent study, it was found that people who slept for eight hours had perfect attention, cognitive process and motor skill. While people who got lesser hours of sleep were slowly declining in the way they performed.

It can be ascertained that sleep debt is a cumulative issue, that is, sleep debt has a neurological cost that accumulates over time. People, who constantly sleep less to work more, tend to fall asleep randomly throughout the late. If you had only had six hours of sleep every night for two weeks your mental calibre and physical strength declines to the same level as someone who has not slept for forty eight hours.

Our overall performance will decline drastically and most of the time we do not realise this. We believe we are working harder and putting more time into completing the task while in reality we are working with a mind that is half asleep.

Solution

Sleep is an important and necessary ingredient needed for living a healthy life. Proper food, meditation, exercise are ways by which you can rejuvenate your body but none of these methods will ever replace sleep.

Adults need around seven to nine hours of sleep every night in order to give out their best performance.

Therefore, make sure that you always get the needed sleep. Working overtime or staying up late is not going to improve your performance but a good night’s sleep will.