Does my business need finance?
To answer this question effectively you need to be armed with certain information – some of which you may not have to hand.
Understanding the direction your business is going in and the financial consequences of decisions made in other areas and by other people in the business is vital for successfully assessing the robustness of your finances, both at present and in the months and years to come.
Where is your business going?
Knowing about the future plans, across the whole company is important. If you work in a purely finance role, you still need to remain informed as those plans will have an impact on your future planning and modelling. To plan financially you must understand the business vision as well as the more tangible goals and decisions made by the senior team.
For instance, plans to double the size of your sales team or increase orders and stock, could mean that you exceed your current finance provisions, as this type of investment usually takes a few months to pay off and involves up-front costs.
Ask the senior and leadership team about their plans, and make sure that the overall plans for the business are accommodated.
• Short-term?
• Long-term?
• Growth?
• Hiring?
• Plans to increase business activity?
Can the business afford all the plans that are currently on the table?
In some businesses communication between departments is poor, so do not assume that all the plans are coming from the top-down.
If communication is an issue regular catch-ups or a feedback loop over email should be introduced. We have produce a guide to help you identify whether or not your business needs finance, ensure that your business finance is well planned and forecasted as well as including a timeline of what to prepare and when. You will find practical tips and questions to analyse your position and help you to prepare, using the timeline provided to follow to keep you on track.