Strategy isn't about being right; it's about being ready. The benefit of a business financial plan comes from the thought that goes into a plan, not from the numbers in the plan. The financial plan proves that your strategy is profitable and provides a guide for your first steps.
The benefit of a business financial plan comes from the thought that goes into a plan, not from the numbers in the plan. The planning process allows you to decide the best path for your company. The financial plan proves your path is profitable and provides a guide for your first steps. The exact actual numbers you achieve will be different from your plan, but the strategies from your plan stay the same until you decide to pivot.
Some owners don't have a good process for strategic planning or can't easily create a financial plan. A visionary owner is rarely an expert in Excel, Google Sheets, or financial planning software. Those owners benefit from working with business advisors like coaches, consultants, and CPAs. The owner and company leaders create the vision; a business advisor quickly and accurately builds the financial plan of that vision.
One planning tip is to run a most likely scenario, a scenario with less revenue, and a scenario with more revenue. Actual results never match your most likely scenario. The other two scenarios prepare you for other outcomes and help you adjust to them if they materialize.
Success comes not from guessing the right numbers but from being ready to constantly adjust to an ever-changing world.
Strategy isn't about being right; it's about being ready.
I wish you planning that guides your next steps and prepares you for the big steps. I wish you well.
- Rob Stephens
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