Strategic Planning and Financial Planning

Strategic Planning and Financial Planning

Planning contributes to a large part of a corporation’s success whether it is in the startup or in its objectives for sustainability. Planning should not be taken lightly, for it is through planning that old ideas are revised and new ones are created. Corporations present many of these ideas within their strategic and financial planning. More so, strategic planning begins to outline the overall desires of the organization and how they expect to achieve them in the upcoming year or further in the future. Within the process of a corporation’s strategic planning, financial planning must be included as well. For corporations and others alike, financial planning is the long-term process of wisely managing your finances so you can achieve your goals and dreams, while negotiating the financial barriers that inevitably arise in every stage of doing so. In business, a financial plan can refer to the three primary financial statements created for the business plan. Corporations create financial forecast of annual incomes and expenses for the company, or specific divisions or departments. A financial plan also includes potential cash needs and the decision of how to raise such cash, whether through borrowing or issuing of company shares.

Every plan is not designed to be the perfect plan, which is why it is a process. One cannot expect that without adequate cash flow, it is possible to create a workable budget and eventually reach the desired goals. The beauty of planning is that there is often room for adjustments to accommodate the current level of income and set reasonable expectations and time frames for achieving the desired goals. As corporation move forward with their plans they must think strategically and logically about their current state and what is possible for their future.

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