Financial planning
Financial planning,one step at a time.
A structured way to move from where a business stands today to where it intends to be.
01/What a plan covers
What a plantypically covers.
A financial plan is a set of assumptions written down so they can be tested. Its value lies less in the document than in the thinking it forces, and in having something to compare reality against.
Finance at Credvista- 01PositionWhere the business stands today, stated plainly.
- 02ObjectivesWhat it intends to achieve, and by when.
- 03AssumptionsWhat has to be true for the plan to hold.
- 04Cash flowThe expected timing of money in and out.
- 05CapitalWhat the plan needs, and where it could come from.
- 06ReviewWhen the plan will be checked and updated.
02/The planning journey
Six steps,taken in order.
Select a step to see what it involves and the questions it usually raises.
Understand
Begin with the business as it is: what it does, how it earns, and what its owners and managers are trying to achieve.
Typical questions
- What is the business trying to achieve?
- What is prompting this conversation now?
- What information already exists?
Assess
Look at the current financial position and the information behind it, noting what is solid and what is uncertain.
Typical questions
- What do the current figures show?
- How reliable is the underlying data?
- Where are the obvious pressure points?
Plan
Set out options and the assumptions each depends on, so choices can be compared on the same terms.
Typical questions
- What are the realistic options?
- What does each one assume?
- What would change the decision?
Structure
Turn the chosen direction into a clear arrangement of responsibilities, timelines and measures.
Typical questions
- Who is responsible for what?
- What happens first?
- How will progress be measured?
Implement
Carry the plan into day-to-day operations, with attention to what changes for the people involved.
Typical questions
- What needs to change in practice?
- What support does the team need?
- What are the early warning signs?
Review
Return to the plan at agreed intervals, compare it with what actually happened, and adjust.
Typical questions
- What matched expectations, and what did not?
- Which assumptions need revisiting?
- What should change for the next period?
03/Planning horizons
Near, middleand far.
- 01
Short term
The months immediately ahead: cash flow, commitments already made, and the buffer that keeps decisions calm.
- 02
Medium term
The next few years: where growth is expected, what it will require, and how it will be supported.
- 03
Long term
The direction of the business: resilience, continuity and the options today’s choices leave open.
Next step
Your business.Your next move.
Let’s explore the financial and business solutions behind your next stage of growth.